Nexperia China Issues Statement on Wafer Supply Disruption

In a statement released on November 2nd, Nexperia Semiconductor China Co., Ltd. informed customers that “Nexperia Netherlands has unilaterally decided to stop supplying wafers to the Dongguan-based assembly and testing facility (ATGD) starting October 26, 2025.”

According to Nexperia Netherlands, the decision was “a direct consequence of local management’s recent failure to comply with agreed contractual payment terms.” Nexperia China strongly refuted this claim, calling it “completely fabricated and highly misleading.” The company said it was “extremely shocked” by the accusation and issued a formal statement in response:

Nexperia China has not breached any contractual terms. On the contrary, Nexperia Netherlands currently owes ATGD approximately RMB 1 billion (USD 137 million) in outstanding payments for goods supplied,

The statement further accused Nexperia Netherlands’ management of “gross negligence” and “placing personal interests above the company’s overall interests,” asserting that those responsible should bear legal responsibility for the losses caused to the company and its employees.

Nexperia China condemned the unilateral supply halt, calling it “a serious violation of contractual obligations and business cooperation principles that undermines customer trust and damages the company’s reputation.”

Despite the dispute, Nexperia China assured customers that it has sufficient inventory of finished and in-process products to ensure stable supply through the end of this year and beyond.

The company also said it has activated contingency plans and is accelerating qualification of new wafer production capacity to secure long-term supply stability.

We are fully confident in completing the verification process soon and ensuring seamless supply for all customers starting next year,