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.
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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.
