Nexperia stops supplying semiconductor materials to factory in China

Nexperia imposed a temporary suspension of semiconductor material supplies to its plant in Dongguan, Guangdong province, southern China, on October 26.

On October 31, international media reported that Dutch chipmaker Nexperia had just announced that it would temporarily stop supplying semiconductor materials (wafers) to assembly plants in China.

This could exacerbate supply shortages that are already worrying automakers around the world .

According to a letter, dated October 29 and signed by Nexperia's interim CEO Stefan Tilger, the company imposed a temporary suspension of semiconductor material supplies to its plant in Dongguan, Guangdong province, southern China, on October 26, due to "recent non-compliance by local management with agreed contractual payment terms."

However, Nexperia affirmed that this decision does not reflect any intention to withdraw from the Dongguan factory or from the Chinese market in general, and committed to finding a solution to this problem.

Nexperia, Nexperia China and Wingtech have not commented on the above information.

Nexperia has been embroiled in a dispute with its Chinese subsidiary since earlier this month after the Dutch government took control of Nexperia from its Chinese owner Wingtech Technology on September 30.

The company also removed its Chinese CEO, amid concerns that its technology could be appropriated by Wingtech.

On October 4, China's Ministry of Commerce blocked Nexperia from exporting chips from China.

China's Wingtech Group bought all of Nexperia from Philips Group, for about $3.63 billion in 2018. The company is now one of the world's largest manufacturers of simple chips such as diodes and transistors.

However, the company also develops chips with more advanced technology such as chips used to optimize battery performance.

Large quantities of chips produced in the Netherlands are widely used in the automotive and consumer electronics industries. Most of them are packaged in China and sold mainly to distributors./.

(TTXVN/Vietnam+)

Source: https://www.vietnamplus.vn/experia-dung-cung-cap-vat-lieu-ban-dan-cho-nha-may-o-trung-quoc-post1074221.vnp