Nexperia's supply chain crisis has disrupted the global automotive industry. In late October 2025, Nexperia's Dutch headquarters unilaterally halted wafer supplies to its packaging and testing plant in Dongguan, China. The Dutch side claimed the move was due to the Dongguan subsidiary's alleged failure to meet contractual payment terms, while Nexperia China countered with allegations that the Dutch parent owed over RMB 1 billion in unpaid fees and accused it of malicious smearing.

 

As a core supplier of automotive-grade basic semiconductors, 70% of Nexperia's wafers rely on the Dongguan plant for packaging and testing before global delivery. The supply cutoff immediately prolonged chip lead times to over 20 weeks (up from 12 weeks) and drove some component prices up tenfold. Automakers including Volkswagen, Mercedes-Benz, and Nissan face production cuts, with the European Automobile Manufacturers' Association warning of potential factory shutdowns within weeks.

 

To mitigate risks, Nexperia China stated its inventory can meet customer demand until year-end and beyond, while advancing new wafer capacity verification. European automakers have launched a "temporary workaround" plan: purchasing wafers directly from Nexperia's European facilities and shipping them to China for packaging at the Dongguan plant, bypassing the dispute. This choice underscores China's global leadership in packaging and testing—Dongguan's 70 billion units annual capacity accounts for 70% of Nexperia's global output, backed by mature quality control and unrivaled cost advantages.

 

The standoff leaves both sides in a stalemate. Nexperia Netherlands cannot replicate the Dongguan plant's scale in the short term, facing potential bankruptcy from breach-of-contract damages. While Nexperia China lacks independent R&D control, China's domestic mastery of basic automotive chip technology enables partnerships with local wafer and chip suppliers.

 

The crisis highlights the need for supply chain restructuring. Automakers must build strategic inventories and dual-source critical components. Chinese domestic carmakers, in particular, should support local chip firms like Silan Microelectronics and China Resources Microelectronics to enhance supply chain resilience. European automakers' proactive measures may accelerate the reorganization of the global semiconductor industry, serving as a catalyst for more robust supply chain systems.