Published by Global Banking & Finance Review®
Posted on November 14, 2025
2 min readLast updated: January 21, 2026
Add as preferred source on GoogleNexperia ensures chip supply through alternative routes amid a dispute with its Chinese plant, affecting the auto industry. Temporary relief granted by China.
AMSTERDAM (Reuters) -Dutch computer chip maker Nexperia on Friday confirmed it continued to offer alternative supply chain solutions to mitigate the disruption caused by the dispute between the Europe-based unit and its packaging plant in China.
"We want to state clearly that Nexperia has not stopped the shipping of wafers altogether," the Dutch unit said in a statement.
"We are committed to delivering wafers into the supply chain and continue to offer alternative supply chain solutions to mitigate disruption and maintain continuity of delivery as much as possible."
Sources told Reuters this week the company was working with customers on a patch that could relieve some pressure on the auto market, where a scarcity of Nexperia chips has dented some production of cars and parts.
Nexperia on Friday also said that according to its calculations, the Chinese arm should be in the possession of a "sufficient amount of wafers and finished products" to continue operations for several months.
"Therefore, any failure to make shipments is fully the responsibility of Nexperia's entities in China," it added.
A standoff between the European side of the business and its Chinese plant, sparked by the seizure of Nexperia by the Dutch government over fears of technology transfer, has snarled supply of its chips that are key for the global automotive market.
Nexperia makes wafers, the base material for making multiple chips, in Europe, which are then sent to its plant in Dongguan in China where they are cut and packaged. However, due to the standoff the European side has halted shipments to China.
The Chinese government gave some temporary relief to carmakers this week by relaxing export controls on chips made by the Dongguan plant. A Dutch delegation is expected to travel to China next week for further talks.
(Reporting by Bart Meijer and Toby Sterling, Editing by Louise Heavens)
A wafer is a thin slice of semiconductor material, such as silicon, used in electronics to create integrated circuits and other microdevices.
Supply chain management involves overseeing and managing the flow of goods, information, and finances as products move from supplier to manufacturer to wholesaler to retailer to consumer.
Export control refers to regulations that countries impose to restrict the export of certain goods, technologies, and services for reasons related to national security, foreign policy, or economic interests.
The automotive industry encompasses all companies and activities involved in the design, development, manufacturing, marketing, and selling of motor vehicles.
Technology transfer is the process of sharing or disseminating technology, knowledge, or skills from one organization or country to another.
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