Several automakers and suppliers are exploring a short-term workaround with Nexperia’s European arm to ease shortages caused by a supply stand-off, Reuters reported, citing sources.
The dispute involves the company’s European operations and its Dongguan packaging plant in China.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Nexperia produces silicon wafers in Europe that are typically shipped to its Chinese plant for cutting and packaging.
Shipments from the European unit to Dongguan were halted on 26 October, citing non‑payment, and the Chinese arm is presently drawing down stockpiles of finished products.
The interruption has affected availability of chips widely used across the global automotive sector.
Under the workaround being discussed, some customers would buy wafers directly from Nexperia’s Hamburg factory and handle separate transport to China.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataIn China, the Dongguan facility would perform final packaging on a contract basis.
One source, a Nexperia product distributor, said: “A lot of companies are currently negotiating and some already are buying wafers from Nexperia EU and providing them to Nexperia China to get exclusive production for themselves.
The arrangement treats the two parts of Nexperia’s operations almost as distinct production and packaging businesses, allowing each to be paid for its work.
It addresses certain quality and supply concerns tied to packaging in Dongguan.
Although, the patch may not be workable for smaller clients. It could, however, relieve some pressure on carmakers and suppliers facing component shortfalls.
Automakers and parts suppliers reported to use Nexperia chips include Volkswagen, Hella, Bosch, Aumovio, and Honda.
Sources described the wafer-routing plan as a “short‑term patch,” and said larger customers are considering it alongside alternatives such as sourcing comparable parts from rivals including Onsemi and STMicroelectronics.
China relaxed export controls recently on chips produced at the Dongguan plant, providing some temporary relief to carmakers.
For further discussions, a Dutch delegation is due to travel to China next week.
Nexperia said it was supporting customers as best it could but declined to discuss specific measures.
A spokesperson for its Chinese parent, Wingtech, declined to comment.
Longer-term responses under consideration include expansion of packaging capacity outside China by Nexperia’s European arm, notably in Malaysia and the Philippines.
The Chinese unit is also weighing a shift toward using wafers manufactured in China.
