The supply chain is tested as Nexperia handles China challenges

Nexperia has published an update on its ongoing operational and governance challenges, following the Dutch government's decision to temporarily lift the previous intervention under the Commodities Act. The company welcomed the decision, highlighting "positive developments" and a constructive dialogue between Dutch and Chinese authorities aimed at restoring supply chain stability. However, Nexperia pointed out that a full normalization of the supply chain still requires active cooperation from its entities in China. The company emphasized that the ruling from the Enterprise Chamber still applies, meaning Zhang Xuezheng remains suspended and is not acting as CEO. The interim CEO, Stefan Tilger, is leading daily operations. Nexperia also described ongoing challenges in maintaining business continuity, noting it has not completely halted wafer deliveries and is implementing alternative solutions to mitigate supply chain disruptions. It stated that dedicated teams are working to identify sustainable solutions until the supply chain is fully restored. All other Nexperia facilities continue to operate normally, and capacity expansion at other sites is planned for 2026. The company further detailed that its Chinese entities have acted outside the established governance framework, citing issues like refusing to accept payments and sending letters to customers with incorrect information. Despite Chinese export restrictions, Nexperia continued direct wafer deliveries in October 2025 and assesses that the Chinese facilities should have sufficient inventory for several months, warning that any delivery failures are the responsibility of the local entities