[News] Nexperia Export Ban Reportedly Drives 5–20% Auto Chip Hikes in Q4; Taiwan Sees Rush Orders

With the Dutch government dismissing Nexperia’s Chinese CEO and moving to take control of the company, the dispute is now disrupting the semiconductor supply chain. According to Economic Daily News, Nexperia is a key global supplier of automotive chips, and its export disruption has triggered a supply chain crisis across the global auto industry. As a result, related Taiwanese manufacturers are now seeing a new wave of transferred and rush orders.

Economic Daily News points out that automakers and suppliers in Europe and the U.S. have recently turned to Taiwanese companies for alternative solutions, leading to a noticeable surge in orders for Taiwan’s automotive semiconductor makers.

Nexperia Turmoil Triggers Power Chip Shortage and Price Hikes

Since the Nexperia turmoil, the global power semiconductor market has fallen into a severe supply-demand imbalance. As noted by ijiwei, from mid-October, spot inventories of MOSFETs and diodes have tightened sharply, with lead times for automotive-grade products extending beyond 12 weeks.

ijiwei also notes that, alongside longer delivery times, prices for some models have begun to rise. Industry sources estimate that MOSFET and diode prices could climb by 5% to 15% in the fourth quarter, while high-end automotive and industrial control components may see increases of over 20%.

The ripple effects have now spread to production and the broader supply chain. According to Economic Daily News, citing industry sources, Nexperia’s Dongguan plant has restricted shipments since China’s National Day holiday and plans to shift to a “four-day-on, three-day-off” schedule this week. Some traders reportedly said products are facing shortages and price hikes, while European and U.S. automakers have urged swift action to resolve the disruption, warning of potentially serious consequences.

Citing National Business Daily, the report adds that employees at Nexperia’s Dongguan site said both working days and overtime hours have been reduced, and since the holiday, inbound inventory has continued to exceed outbound shipments.

Economic Daily News notes that Nexperia is a leading global power semiconductor IDM and a top automotive chipmaker—ranking first worldwide in shipments of small-signal diodes and transistors, first in ESD protection devices, second in logic ICs, first in small-signal MOSFETs (core components for power control), and second in automotive-grade power MOSFETs.

Nexperia’s Supply Halt Threatens Global Auto Supply Chain

Amid rising tensions, Dutch Economy Minister Vincent Karremans said on Sunday that he expects to have a meeting with a Chinese government official within days to discuss ways to resolve the dispute, according to Reuters.

Nexperia, an affiliate of China’s Wingtech, plays a vital role in the global automotive ecosystem, supplying major automakers such as Volkswagen, BMW, and Mercedes-Benz, as noted by Economic Daily News. Wingtech also revealed that China currently accounts for about 80% of Nexperia’s production capacity, while the Chinese market contributes roughly half of its global sales, ijiwei indicates.

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• [News] Dutch Government Seizes Control of Chinese-Owned Nexperia Over Alleged Technology Leak Risks

(Photo credit: Nexperia)