- Officials are working on diplomatic solutions to ease chip concerns in China.
- Nexperia’s China unit says it can meet demand despite halted wafer supplies.
Concerns around access to basic chips eased slightly after recent comments from both the United States and China. The two governments signalled fewer barriers for Nexperia to ship its products. The Dutch chipmaker said on Sunday that its main priority now is keeping supply steady for customers. It did not respond to comments from its China subsidiary about moving faster toward operating on its own.
The Dutch government said it is still involved in talks with China, other governments, and industry groups to find “a constructive way forward” for the company.
A dispute over control of Nexperia, which produces large volumes of simple chips used in cars, has led to shortages and raised concerns among automakers around the world.
Amid the tension, Nexperia’s China unit said it had built up “sufficient inventories of finished goods and work-in-progress,” adding that its supply chain remained stable despite its parent company stopping wafer shipments.
Nexperia halted wafer supplies on October 26, calling the decision “a direct consequence of the local management’s recent failure to comply with the agreed contractual payment terms,” according to Reuters.
In response, the China unit described the move as “unilateral” and “extremely irresponsible.” It also called the payment claim “misleading and highly deceptive,” according to a statement shared early Sunday.
The China subsidiary argued it had the right to operate independently after Dutch authorities took control of Nexperia in September, citing concerns about potential technology transfers away from Europe. Following that move, Beijing blocked the company’s products from leaving China.
“We have proactively initiated multiple contingency plans and are accelerating the qualification of new wafer supply sources,” the Chinese unit said on social media. It expects to meet all customer demand next year. For now, the unit said existing inventory should cover orders “through year-end and beyond.”
Nexperia builds low-cost power-control components such as transistors and diodes — parts found in most electronic devices. Carmakers have warned that any disruption could affect vehicle production, since the chips are inexpensive but widely used.
Reuters reported that the White House is expected to clear shipments from Nexperia’s China facilities after a trade truce reached during a summit between US President Donald Trump and Chinese President Xi Jinping in South Korea.
China’s commerce ministry said it would consider exemptions for Nexperia’s chip exports. In Europe, officials are trying to calm the situation. After a virtual meeting with the company, EU tech chief Henna Virkkunen said in a post on X: “An important meeting this morning with @TeamNexperia, where I reaffirmed our determination to work towards a diplomatic breakthrough. We discussed potential short- and medium-term measures to strengthen the resilience of our supply chain.”
She added that Nexperia has been invited to join the Chips Act Task Force, which is gathering information on the economic risks tied to the current shortage.
Earlier this month, the Dutch government assumed control of the chipmaker. That decision led Beijing to block shipments out of China, raising concerns among global automakers. After that, Nexperia paused wafer deliveries to its factory in China, according to a letter seen by Reuters.
Virkkunen said the situation highlights the need for a more secure supply chain, as well as plans for stockpiling and diversifying sources of these basic components.
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