Semiconductor supply chain disruption
Nexperia confirms ongoing supply chain disruption despite China’s relaxed export controls
In a company update issued by chipmaker Nexperia on November 14, the company’s Dutch headquarters confirmed that, despite China reversing export restrictions on semiconductors, its ongoing dispute with its entities in China has continued to disrupt its supply chain operations.
In the statement, Nexperia welcomed the news that Chinese
authorities had provided exemptions
to previously introduced export controls, facilitating the resumption of
exports from Nexperia’s Chinese facility and subcontractors. However, it noted
that while this signals progress, it is not tantamount to a full restoration of
Nexperia’s supply chain.
It clarified that “Nexperia hasn’t stopped the shipping of
wafers altogether” and that all other Nexperia sites outside of China are operating
as usual. It added that “dedicated teams are working continuously to identify
and implement viable paths forward”.
The company’s Dutch leadership claimed that “Nexperia’s
entities in China have stopped operating within the established corporate
governance framework and are ignoring the lawful instructions of Nexperia
B.V.'s global management”.
This, it has said, is illustrated by actions such as Nexperia
China’s refusal of payments for wafers, misappropriation of Nexperia China
entities' corporate seals, establishing unauthorised bank accounts and sending
unauthorised letters containing false information.
According to estimates from Nexperia’s headquarters in the
Netherlands, Nexperia China “should be in the possession of a sufficient amount
of wafers and finished products available to continue operations for several
months”.
In addition to these updates, Nexperia addressed speculation
regarding the alleged lifting of the Dutch Government Order, after Bloomberg
reported that Dutch authorities were willing to suspend their intervention
under Goods Availability Act in order to ensure the resumption of chip
exports. Nexperia confirmed that, as it is yet to receive any news on this from
the Dutch Ministry of Economic Affairs, it is continuing to act in full
compliance with the order.
With Nexperia’s chips vital to the production of several vehicle
models, the impact of this ongoing crisis has impacted automakers around the
world. VW
Group and Volvo Cars were amongst the OEMs warning of the impact chip shortages
in October, while Stellantis
confirmed it was monitoring the situation day by day from its “cross-functional
war room”.
Additionally, Reuters recently reported that Nissan
is set to cut production of its top-selling Rogue model in Japan due to a limited
supply of chips from Nexperia.
Meanwhile, in a recent Q&A with analysts following the release of Honda's H1 2025 financial results, Noriya Kaihara, director, executive vice president and representative executive officer at Honda, directly referenced the crisis at Nexperia. He spoke of "supply challenges for semiconductors" and added that this has resulted in Honda having to make "restrictions and adjustments" to production operations in North America.
It outlined that operations in Mexico have been halted since October 28, while in Canada and the US daily production volume has been reduced. Based on the assumption that shipments from China would resume following the lifting of export restrictions, Honda forecasts a reduction of 110,000 units in total due to the Nexperia crisis. Kaihara explained that the semiconductor supply shortage has cost Honda around ¥150 billion ($969 million).
As the potential for significant supply chain disruption for
OEMs becomes clearer, Nexperia’s customers will be hoping for a rapid resolution
to this dispute between the chipmaker’s Dutch leadership and its Chinese
entities.
