[News] Nexperia China Wafer Stock May Run Out by Mid-December; Carmakers Reportedly Seeking Workarounds

Global automakers are on alert as the Nexperia dispute escalates, raising fears that key chip supplies could run out if the impasse persists. According to Financial Times, citing industry sources, European carmakers and other industrial companies are still grappling with shortages that could halt production lines within weeks, despite China agreeing to ease export controls.

The Chinese facility’s wafer inventory is expected to last only until early to mid-December, though the situation could shift as Nexperia’s China unit seeks alternative suppliers, the report notes. Nexperia’s Dutch arm has continued blocking wafer shipments to its breakaway China subsidiary.

Customer Workarounds Amid the Nexperia Standoff

In an effort to navigate the worsening chip shortage, some customers are pursuing a workaround to sidestep the dispute between Nexperia’s Europe-based unit and its packaging facility in China. According to sources cited by Reuters, they are arranging to buy wafers directly from Nexperia’s Hamburg plant, ship them separately to China, and then contract the Dongguan site for final packaging.

As Reuters notes, the workaround is neither a long-term fix nor practical for smaller customers, but it offers a temporary patch that may ease some strain on the auto sector, where shortages of Nexperia chips have already disrupted production of vehicles and components. Another possible workaround is to substitute Nexperia chips with roughly comparable components from competitors such as Onsemi or STMicroelectronics, the report notes.

Reuters also adds that German auto-parts supplier Hella said on Thursday it has resumed sourcing components from Nexperia’s China operations under delivery arrangements established early in the dispute. The company noted that, despite ongoing supply-chain uncertainties, the process is generally running smoothly and it is currently able to meet its delivery commitments.

Looking further ahead, the report adds that Nexperia’s European arm is exploring plans to expand its packaging operations in Malaysia and the Philippines, while the China unit is seeking to shift toward using domestically produced wafers to replace those from Europe.

Dutch Delegation Heading to China to Resolve Nexperia Dispute

Meanwhile, DutchNews indicates that a Dutch government delegation will travel to China “early next week” in a bid to resolve the Nexperia dispute, according to economic affairs minister Vincent Karremans. He said he welcomed China’s decision to ease export restrictions on Nexperia’s legacy chips and noted that he, along with European and international partners, is closely monitoring whether shipments genuinely resume.

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(Photo credit: Nexperia)