Nexperia Urges China Unit to Restore Chip Flow Amid Fears of Supply Squeeze — Update

By Sherry Qin and Joshua Kirby

Nexperia has urged its China unit to restore the supply of semiconductors key to auto production, warning that customers are facing imminent stoppages.

The Dutch chip maker said in an open letter on Thursday that it hadn't received any meaningful response from its Chinese unit despite multiple attempts to re-establish dialogue. It urged its Chinese partner to respond and take immediate steps to restore predictable and established supply flows.

"This is in the interest of all parties involved, including notably our customers," Nexperia added.

The Chinese owner of Nexperia, Wingtech Technology, in response called on its Dutch subsidiary to enter talks over the issue of control of the company. The Dutch government's seizure of control in September "is the direct cause of today's instability and disorder in the global semiconductor supply chain," Wingtech said on Friday.

"Unless this situation is rectified, restoring stability and the smooth functioning of the global semiconductor supply chain will be impossible," it said.

The auto industry could face disruption to its supply if the dispute is not resolved, Wingtech warned.

"Automakers' production and delivery schedules may be forcibly adjusted," it said. "Supply chains across the industrial automation sector would become unstable, jeopardizing the reliability and continuity of industrial production."

Nexperia commands an important share of the market for basic chips used in many components of modern auto manufacturing.

The Hague took control of Nexperia on Sept. 30, arguing the move was necessary to prevent Europe from losing the "technological knowledge and capabilities" necessary for its economic security. U.S. authorities had warned their Dutch allies that the chip maker could be put on a trade blacklist unless its Chinese owners were ousted.

Beijing fired back by issuing a notice of export control on Oct. 4, prohibiting Nexperia China and its subcontractors from exporting certain products manufactured in China.

A subsequent meeting between President Trump and his Chinese counterpart, Xi Jinping, helped calm the dispute, and the Dutch government last week suspended the order that gave it various powers over Nexperia.

The move has been seen as a step toward resolving the spat, and Nexperia chips began leaving China again earlier this month, soothing jitters in the auto industry.

However, customers are still reporting "imminent production stoppages," the Dutch company said in the letter.

"This situation cannot persist," Nexperia said.

Write to Sherry Qin at sherry.qin@wsj.com and to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

November 28, 2025 07:42 ET (12:42 GMT)