October 31, 2025 /SemiMedia/ — Nexperia Netherlands has notified customers that it suspended wafer shipments to its Chinese assembly and packaging facility effective October 26, citing “the local management’s recent failure to comply with payment terms” in a letter dated October 29 and signed by interim CEO Stefan Tilger.

The suspension highlights a growing weak spot in the global semiconductor supply chain — especially in automotive electronics, where stability is already under pressure. Nexperia’s wafers, produced in its European front-end fabs and shipped to China for packaging and assembly, underpin a range of discrete and power devices used in vehicle control units, sensors, and power modules.

Meanwhile, its Chinese parent, Wingtech Technology, is locked in a governance dispute with Dutch regulators, who have taken control of Nexperia’s European operations citing national security grounds.

For automakers and component suppliers, the incident is another reminder that even low-cost “commodity” chips are not immune to geopolitical or managerial risks. Industry sources say companies are now reviewing their BOMs, exploring alternative sourcing, and increasing inventories as a precaution.