Nexperia's Wafer Supply Suspension: A Global Chip Crisis Looms

Nexperia, a Dutch chipmaker, has halted wafer supplies to its Chinese assembly plant due to a payment dispute. The suspension, linked to troubles with local management, risks exacerbating global automotive supply chain woes. Efforts are underway to resolve the issue and maintain customer supply.

Dutch chipmaker Nexperia has indefinitely suspended the supply of wafers to its Chinese assembly plant. This move follows a dispute over payment terms with local management, sparking concerns about the potential impact on the global automotive supply chain.

The conflict, which began after the Dutch government seized control of Nexperia from its Chinese owner, Wingtech Technology, has led to ongoing tensions. Nexperia's interim CEO, Stefan Tilger, emphasized the company's intention to find alternative solutions for their customers despite the current stalemate.

Meanwhile, global automobile manufacturers, including Stellantis and Nissan, are taking precautions to mitigate the situation's effects. The repercussions of the suspension have put the automotive industry on high alert, with fears of a broader chip supply crisis looming.

(With inputs from agencies.)