Nexperia’s recent decision to suspend wafer shipments to its Chinese plant in Dongguan has caught the attention of the global industry, which is already grappling with the ongoing semiconductor shortage. This move, made after a breach of payment agreements by the Chinese division, could have a significant impact on the supply of semiconductors to the automotive and electronics industries, worsening an already unstable situation.
At NEWSCENTRAL, we note that Nexperia’s decision to halt shipments is tied to political and corporate tensions that escalated after the Dutch government took control of the company from its Chinese owner, Wingtech Technology, in September 2025. This intervention led to the firing of key executives in the Chinese division and raised concerns over technology security.
According to Nexperia’s management, the suspension of shipments was a necessary measure due to the failure of the Chinese division to meet contractual obligations. The company also stated that it does not plan to exit the Chinese market and will continue to seek ways to normalize deliveries. However, all transactions with Chinese clients will now be conducted in yuan instead of US dollars, as was previously the case.
We at NEWSCENTRAL believe that this decision is part of a broader trend where corporate strategies intersect with political interests, amplifying uncertainty in the semiconductor market. Lucas Grant, a semiconductor industry analyst and manufacturing strategist, notes that “this shipment halt could significantly change the market dynamics, which is already dealing with a chip shortage and rising component prices. In such conditions, manufacturers are forced to explore new ways to ensure the continuity of supply.”
The semiconductor market, already facing supply chain difficulties, now faces additional challenges. The cessation of wafer shipments to the Chinese plant of Nexperia could disrupt operations for major manufacturers like Stellantis and Nissan, who are already dealing with the consequences of the chip shortage. At NEWSCENTRAL, we observe how these and other automakers are ramping up efforts to mitigate the impact, forming teams to monitor the situation and improve logistics.
An additional factor influencing the market has been the sharp rise in chip prices. Nexperia’s products, which previously cost only a few Chinese cents, have now increased to two or three yuan each – more than a tenfold increase. At NEWSCENTRAL, we forecast that this price surge will continue, putting further pressure on margins for manufacturers in automotive and consumer electronics sectors.
Another significant issue has been the actions of the Chinese authorities. In early October, China’s Ministry of Commerce banned the export of chips from Nexperia, further exacerbating the uncertainty in the semiconductor market. At NEWSCENTRAL, we view this as part of broader geopolitical pressure on tech companies, which could lead to serious repercussions for global supply chains.
Despite the ongoing challenges, Nexperia representatives assure that the company is continuing to work on resolving the issue and is already developing alternative supply channels. However, the question remains as to how quickly the situation can be stabilized and avoid further economic consequences.
As experts at NEWSCENTRAL point out, the current geopolitical risks and trade barriers are having a significant impact on the semiconductor market. We predict that, in the coming months, companies will be forced to invest in supply diversification to minimize risks associated with external economic instability. In the future, successful companies will be those that can quickly adapt to market changes and respond to political and economic challenges.
Therefore, to ensure long-term sustainability, companies must reassess their supply strategies, seek new partnerships, and diversify their sources of supply. At NEWS CENTRAL, we believe that those companies able to successfully adapt to these changes will enhance their competitiveness and resilience in the face of global economic and political upheavals.