Nexperia suspended wafer shipments to its assembly plant in China on October 26 due to local management's breach of agreed contractual payment terms. This decision will exacerbate supply shortages for automakers worldwide.
Nexperia, a semiconductor manufacturer from the Netherlands, has suspended wafer shipments to its assembly plant in China due to the administration in the PRC's "violation" of "agreed contractual payment terms."
UNN reports with reference to Reuters.
Details
Dutch company Nexperia is reducing wafer supplies to its Chinese plant.
A letter dated October 29 and signed by Nexperia's interim CEO, Stefan Tilger, states that the company suspended shipments to its plant in Dongguan, Guangdong province, southern China, on October 26. According to the document, this decision was a "direct consequence of the local management's recent violation of agreed contractual payment terms."
The consequences of the decision will obviously exacerbate the supply shortage that is troubling automakers worldwide.
Addition
Since the beginning of this month, the Dutch semiconductor manufacturer has been embroiled in a dispute with its Chinese subsidiary. This was a consequence of the Dutch government taking control of Nexperia at the end of September, separating it from its Chinese owner Wingtech Technology.
Recall
US President Donald Trump said that further talks between Beijing and Nvidia would take place after his meeting with Chinese leader Xi Jinping. This indicates no significant change in Washington's control over technology exports.
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