November 1, 2025 /SemiMedia/ — Nexperia has suspended wafer shipments to its Chinese assembly and packaging facility, raising concerns across the automotive and electronics supply chain. According to Nexperia Netherlands, the halt, effective October 26, was caused by the recent failure of local management at Nexperia China to meet payment terms. The company added that Dutch regulators have also intervened in its European operations. Some customers and distributors are already taking action to secure supply, with a few reviewing inventories and exploring alternative sources to avoid potential production delays.

A representative from a Chinese new energy vehicle manufacturer said they have started evaluating alternatives to Nexperia parts, though the verification process takes time. “We began testing Littelfuse and ROHM replacement parts last week, but the process will take at least six weeks. Our current Nexperia inventory will only last until mid-November,” the source said.

Distributors are also responding quickly to the disruption. A distributor executive noted that several major global EMS customers have asked for a full evaluation of Nexperia components in their BOMs to identify possible replacements. “Customers want a complete replacement list, covering diodes, MOSFETs, and voltage regulators,” the executive said. “They’re concerned that supply uncertainty could continue for some time.”

The disruption has also contributed to turmoil in the electronics component spot market. With supply tight, prices for certain Nexperia parts and other high-demand components have started to climb sharply, in some cases doubling from pre-crisis levels. Smaller distributors and EMS providers are facing mounting challenges to secure inventory while keeping costs under control.

Industry analysts warn that once customers complete their replacement validation, short-term disruptions could lead to long-term migration, potentially resulting in permanent market share loss for Nexperia.

Looking at Nexperia’s history provides further context. Before being acquired by Wingtech Technology in 2019, the company generated roughly $1.5 billion in revenue, with steady growth and gross margins around 20–25%. After the acquisition, Nexperia leveraged Chinese production capacity and global customer channels, boosting revenue to about $2.36 billion in 2022 and lifting gross margins to 30–35%, particularly in high-value automotive power devices. This history shows that post-acquisition growth accelerated, but dependence on global supply chains also increased.

The current disruption could create opportunities for Chinese brands. Analysts note that local alternatives may gain recognition among engineers as companies seek replacements. For example, during the 2018–2019 MLCC shortage, CCTC expanded its market share, and in the 2022 chip shortage, GigaDevice captured part of ST microcontroller sales in China and has gradually become known to engineers outside China as well. This demonstrates that global supply constraints can give domestic brands a chance to enter customer BOMs and establish a lasting presence.

If Nexperia’s supply issues persist, customers’ substitution actions could prevent the company from maintaining its post-acquisition revenue peak. In the short term, its market scale could revert to roughly $1.5 billion, similar to pre-acquisition levels, representing a potential 25–30% revenue decline. Returning to the post-acquisition peak of $2.36 billion will take time, depending on supply restoration, rebuilding customer trust, and winning back replacement clients.

Even if normal supply resumes, Nexperia still faces challenges from shrinking market share, customer migration, and slow revenue recovery. The disruption may reshape competitive dynamics in the discrete and power device market, while domestic alternative brands could gain visibility and additional market share.