Recently, the internal dispute at Nexperia, a global semiconductor company, has seen new developments. On November 2, Nexperia China Ltd. issued a notice to its customers, formally responding for the first time to the decision made by its Dutch headquarters to halt wafer supply. The company stated that the breach of contract allegations are “fabricated” and disclosed that Nexperia Netherlands is actually in arrears of up to 1 billion RMB for payments owed to its Dongguan factory. The focus of the dispute: the breach of contract allegations and payment disputes stem from a unilateral notification by Nexperia Netherlands, stating that it plans to stop supplying wafers to the packaging and testing factory (ATGD) in Dongguan, Guangdong, starting October 26, 2025. The Dutch side attributed this decision to the “local management’s recent failure to comply with agreed contract payment terms.” In response, Nexperia China strongly refuted this statement in its announcement, accusing the Dutch side of “malicious defamation” and emphasizing that “Nexperia China has not breached any contract.” For the first time, it publicly filed a counterclaim—Nexperia Netherlands currently owes a substantial amount of payment to ATGD, reaching 1 billion RMB. This mutual accusation has completely exposed the internal business conflicts between the two parties.
Nexperia China: Supply Chain Stability, Alternative Capacity is on the Way
Despite the intense internal dispute, Nexperia China emphasized in its announcement that its current supply chain security has not been directly affected. The company stated that it has established “sufficient finished goods and work-in-progress inventory” to “stably and continuously meet the order demands of a wide range of customers until the end of the year and even longer.” This indicates that, at least in the short term, the market need not worry about product shortages due to internal supply disruptions. More critically, to ensure the long-term sustainability and resilience of supply, Nexperia China has initiated an emergency plan. The announcement revealed that the company is “accelerating the verification of new wafer production capacity” and is “confident in completing the verification in the short term and seamlessly meeting all customer demands starting next year.” This statement shows that Nexperia China is actively seeking and introducing alternative wafer suppliers outside of its Dutch headquarters, aiming to completely eliminate dependence on a single source.
Industry Observation: Localization Strategy and Supply Chain Resilience Test
This internal conflict at Nexperia occurs against the backdrop of profound adjustments in the global semiconductor industry landscape. As a semiconductor company originating from Europe with significant production and R&D bases in China, its internal management coordination and supply chain arrangements are facing severe tests. Nexperia China’s rapid initiation of alternative capacity verification reflects that the Chinese semiconductor industry has established a certain supply chain foundation and capability in mature processes and device fields. Although challenges remain in advanced processes, the domestic wafer manufacturing capacity in the main product areas of Nexperia, such as discrete devices and logic chips, is gradually rising, providing possibilities for Nexperia China to seek supply chain diversification. This incident also serves as a wake-up call for other multinational semiconductor companies: in the complex international political, economic, and business environment, how to balance global management efficiency with regional operational resilience has become an urgent issue to address. Currently, Nexperia Netherlands has not publicly responded to the Chinese side’s allegations of payment arrears and alternative capacity plans. How this internal dispute will conclude and whether Nexperia China can achieve a “seamless transition” in wafer supply will be a focal point of industry attention in the coming year.