Nexperia’s China Unit Says It Has ‘Ample Inventory’ After Dutch Parent Halts Supply

The Chinese arm of Dutch chipmaker Nexperia said on Sunday it has “sufficient finished goods and work-in-progress inventory,” adding that its supply chain remains secure and stable despite its parent company’s decision to suspend wafer shipments.

The Dutch firm stopped supplying wafers to its Chinese assembly plant on October 26, calling the move “a direct consequence of local management’s recent failure to comply with agreed contract payment terms,” Reuters reported on Friday.

In a statement released early Sunday, Nexperia China denounced the suspension as “unilateral” and “highly irresponsible,” calling the parent company’s claims about payment issues “misleading and grossly deceptive.”

The Chinese subsidiary said it has the right to operate independently from Nexperia Netherlands, following a September decision by Dutch authorities to place the company under their control — seizing it from its Chinese owner, Wingtech (600745.SS) — over concerns about potential technology transfers.

Beijing responded by blocking Nexperia’s products from leaving China.

“We have already activated several emergency plans and are accelerating the qualification of new wafer suppliers,” Nexperia China said on its Chinese social media account. “We expect to meet all customer demands starting next year.”

It added that its current inventory will be sufficient to fulfill orders through the end of this year and beyond.

Nexperia produces basic, low-cost power-control chips — such as transistors and diodes — that sell for just a few cents but are essential in nearly all electronic devices. Automakers that use Nexperia’s chips have warned of possible production disruptions if supply remains restricted.

Reuters also reported on Friday that the White House may soon announce the resumption of shipments from Nexperia’s China facilities. The move reportedly follows a trade understanding reached between U.S. President Donald Trump and Chinese President Xi Jinping during a summit in South Korea.

China’s Ministry of Commerce said on Saturday it is considering exemptions that would allow Nexperia to resume chip exports from the country.