Nexperia China vows business as usual after Dutch wafer supply halt

Core Viewpoint - Nexperia China is committed to maintaining uninterrupted production and has secured new wafer suppliers to meet customer demand despite recent operational challenges stemming from its Dutch parent company's management issues [1][5]. Group 1: Operational Status - Nexperia China has assured customers that production will continue without interruption, citing sufficient inventories of finished goods and work-in-progress to fulfill orders through the end of the year and beyond [1][5]. - The company has implemented "multiple contingency plans" to ensure operational stability and is accelerating the qualification of new wafer suppliers for long-term supply resilience [1][5]. Group 2: Management and Financial Disputes - The Dutch headquarters suspended wafer shipments to Nexperia China's assembly and testing plant in Dongguan, which accounts for approximately 70% of the company's global output, due to alleged non-compliance with contractual payment terms [3]. - Nexperia China refuted the Dutch management's claims, stating that it has not breached any contracts and that the Netherlands unit owes over 1 billion yuan (approximately US$140 million) in outstanding payments to its Dongguan facility [4]. - The Chinese division criticized the Dutch management for prioritizing personal interests over the company's overall interests and suggested that they should bear legal responsibility for the resulting losses [4]. Group 3: Customer Relations - The unilateral halt to wafer shipments has "gravely undermined customer trust," but Nexperia China remains committed to product quality and fulfilling customer promises [5][6].