Nexperia faces challenges in China, supply chain tested

Nexperia provided an update on its operational challenges and related management following the Dutch government's decision to temporarily suspend an order under the Goods Availability Act. The company reported "positive changes" and constructive dialogue between Dutch and Chinese authorities aimed at restoring supply chain stability, but warned that full normalization still requires active cooperation from its entities in China. The Enterprise Chamber's ruling remains in force, meaning Zhang Xuezheng is still suspended as CEO, and the voting rights from shares indirectly held by Wingtech Technology remain under an independent administrator. The interim CEO, Stefan Tilger, continues to lead daily operations. The company detailed ongoing efforts to maintain operational continuity, stating it has not completely halted wafer shipments and is implementing alternative supply chain solutions. It noted that all other Nexperia sites are operating normally and that it is prioritizing increasing production capacity at other locations, a goal it expects to achieve in phases by 2026. Nexperia also stated that its Chinese entities have been operating outside established corporate governance frameworks, citing examples such as refusing to accept payments for wafers and misusing company seals. Despite Chinese export restrictions, the company claims it continued direct wafer deliveries throughout October 2025 and believes its Chinese plants have sufficient inventory to operate for several months, warning that any supply failures are the sole responsibility of the local management in China