Nexperia Suspends Wafer Shipments to China After Dutch Government Seizure

Dutch semiconductor company Nexperia has suspended wafer shipments to its assembly plant in Dongguan, China, following a takeover by the Dutch government due to governance and national security concerns. The suspension, attributed to the Chinese unit's failure to meet contractual payment terms, threatens to worsen the global chip shortage affecting automakers and electronics manufacturers. The Dutch government intervened amid fears that the Chinese CEO was dismantling European operations and moving production to China, raising geopolitical tensions between Europe, China, and the U.S. Nexperia is seeking alternative supply solutions to maintain global customer support while the Dongguan facility remains operational but limited. Automakers such as Stellantis and Nissan are monitoring the situation closely, warning of potential production disruptions if chip supplies do not resume. The conflict highlights broader issues of semiconductor supply chain resilience and the EU's push to increase chip production independence from China.