Nexperia cuts wafer supplies to Chinese plant, ratcheting up chip disruptions

BEIJING/TAIPEI: Dutch chipmaker Nexperia has suspended supplies of wafers to its Chinese assembly plant, according to a letter addressed to its customers that was reviewed by Reuters, which could exacerbate a supply squeeze that is worrying automakers worldwide.

The letter, dated October 29 and signed by Nexperia interim CEO Stefan Tilger, said the October 26 suspension affecting its plant in Dongguan, in southern China’s Guangdong province, was “a direct consequence of the local management’s recent failure to comply with the agreed contractual payment terms.”