Nexperia’s China unit is moving to line up new wafer suppliers over the next six to nine months as a deepening legal and operational dispute with its Dutch parent company disrupts supplies to one of the world’s largest producers of automotive and industrial chips, according to a South China Morning Post report. The spat has led to production delays and stoppages at several major automakers, with further plant shutdowns already slated for 2026.

At a shareholder meeting in Shanghai on Friday, December 26, Wingtech Technology, the Chinese owner of Nexperia China, said the Dongguan manufacturing base in Guangdong province continues to operate despite what it described as a "significant gap in wafer supply." The shortfall follows a decision by Nexperia’s Netherlands head office in Nijmegen to suspend wafer shipments to the Chinese plant on October 29, after Nexperia China refused payment for delivered wafers. Wingtech said the Dutch side had also restricted internal fund transfers.

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Wingtech has said a court hearing on the dispute will be held in the Netherlands in January. A company representative told state-backed Shanghai Securities News that the Dutch government’s intervention may violate a 2001 bilateral investment protection agreement, adding that Wingtech could pursue international arbitration with claims of up to $8 billion if the issue is not resolved within six months.

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