Nexperia China issued an announcement in the early hours of Sunday (November 2), stating that Netherlands-based Nexperia Semiconductor has unilaterally decided to stop supplying wafers to its packaging and testing plant (ATGD) located in Dongguan, Guangdong Province, China, starting from October 26, 2025. The company currently maintains ample stock, sufficient to meet customer orders through year-end and possibly for an even longer period.
The company posted an open letter to customers via its WeChat public account, claiming that the alleged reason put forward by Netherlands-based Nexperia Semiconductor—namely that “local management has recently failed to adhere to specified contract payment terms”—is completely fabricated and a malicious act to smear the management of Nexperia China.
The letter points out that Nexperia China has not engaged in any breach of contract; rather, Netherlands-based Nexperia Semiconductor currently owes ATGD payments totaling 1 billion RMB (181 million SGD). The relevant management team at Nexperia Semiconductor in the Netherlands was seriously derelict in decision-making processes, prioritizing personal interests over the overall interests of the company, gravely violating professional ethics and corporate governance requirements. They should bear legal responsibility for the losses caused to the company and to its employees.
The unilateral suspension of supply by Netherlands-based Nexperia Semiconductor completely disregards customer interests, severely violates contractual agreements and principles of business cooperation, undermines customer trust, and is deemed an extremely irresponsible act.
The letter further states that Nexperia China has established a sufficient inventory of finished and in-process goods, enabling it to stably and continuously fulfill widespread customer orders through year-end as well as for an extended period, ensuring a safe and reliable supply chain.
To ensure long-term and resilient supply, the company has actively initiated multiple contingency plans and is accelerating the certification of new wafer capacities. The company is confident that certification can be completed in the short term and is prepared to seamlessly meet all customer demands from next year onward.
On September 30, the Dutch government, citing national security reasons, invoked the Cold War-era “Goods Supply Act” to forcibly take control of Nexperia, which is headquartered in the Netherlands but controlled by Chinese chipmaker Wingtech Technology, and replaced the company’s Chinese CEO. Since then, Nexperia Semiconductor and its China subsidiary have been embroiled in disputes.
According to an earlier Reuters report, a letter to customers signed by interim Nexperia Semiconductor CEO Till Gerte indicated that the company suspended supplies to the Dongguan plant on October 26, stating this was “directly caused by local management's recent failure to fulfill the agreed contract payment terms.”