Chip Disruption Crisis: Nexperia Halts Wafer Supplies to Chinese Plant Amid Payment Dispute

Nexperia, the Dutch chipmaker, has escalated the ongoing chip disruption crisis by halting the supplies of wafers to its assembly plant in Dongguan, China. This suspension, stemming from a payment dispute, comes in the wake of the Dutch government’s intervention in Nexperia’s ownership. The move risks exacerbating the already critical supply shortages affecting automakers globally. The conflict initiated when Nexperia’s local management in China failed to adhere to agreed payment terms, leading to the suspension on October 26. This managerial misstep prompted Nexperia to take action, expressing concerns over the potential appropriation of its technology by its now overthrown Chinese…