TLDRs;
- Nexperia’s China unit has resumed chip sales after a temporary export ban tied to an ownership dispute.
- All local transactions must now be settled in yuan, signaling deeper localization under China’s trade policies.
- The export block disrupted auto supply chains in Japan and Germany, with rising prices and extended lead times.
- Southeast Asian chip packaging firms are positioning to absorb production displaced from China amid ongoing tensions.
Dutch semiconductor manufacturer Nexperia has restarted chip sales through its China unit after a brief but significant halt earlier this month caused by a Beijing export ban tied to an ownership dispute.
The company’s Chinese subsidiary will now require all domestic transactions to be settled in yuan, signaling a deeper move toward localization amid growing regulatory scrutiny.
The decision comes shortly after the Dutch government’s takeover of Nexperia on September 30, which prompted China’s Ministry of Commerce to temporarily suspend exports from the firm’s local facilities. The suspension disrupted shipments to domestic distributors and rippled through automotive supply chains in Japan and Germany, where Nexperia components are widely used.
Currency Shift Reflects Strategic Recalibration
According to local reports, Nexperia’s China branch has instructed partners and customers to conduct all payments exclusively in Chinese yuan, a move likely designed to comply with Beijing’s financial oversight measures and reduce exposure to Western sanctions. Previously, many transactions were settled in euros or U.S. dollars.
While sales have resumed, the relationship between the Dutch parent and its Chinese subsidiary remains tense. Nexperia’s global headquarters has warned customers it “does not guarantee” the quality of products sourced from the Chinese unit. In response, the unit pushed back, accusing the parent company of spreading “groundless doubt” about its operations.
This internal friction underscores the challenges multinational chipmakers face as geopolitical divides increasingly reshape technology trade and supply chains across Asia and Europe.
Automotive Supply Chains Feel the Strain
Nexperia, one of the world’s leading producers of small-signal diodes, transistors, and ESD protection devices, relies heavily on its Dongguan site in southern China, which turns out over 50 billion components annually. Roughly 80% of global chip packaging capacity, the critical back-end process of assembly and testing, sits within mainland China.
The export disruption hit automakers hard. The company supplies parts to Volkswagen, Volvo, General Motors, and Mercedes-Benz, among others. With lead times stretching from 12 to 20 weeks and prices doubling or tripling, automakers scrambled to secure alternative inventories for automotive-grade components such as power MOSFETs, of which Nexperia ranks second globally.
While sales have resumed, analysts warn that production and packaging bottlenecks could persist, especially if diplomatic friction between The Hague and Beijing escalates further.
Southeast Asia Poised to Absorb Overflow
As Nexperia searches for packaging partners outside China, attention is turning to Southeast Asia’s Outsourced Semiconductor Assembly and Test (OSAT) players. Companies such as Amkor Technology and ASE Group have expanded facilities in Vietnam, Malaysia, and the Philippines, preparing to absorb displaced volume.
Amkor’s Bac Ninh plant in Vietnam is reportedly tripling its annual output capacity, while ASE’s Penang site has expanded to over 3.4 million square feet to serve the automotive and AI chip sectors. Meanwhile, Taiwan’s Pan Jit International is negotiating potential order transfers from Nexperia customers seeking more stable supply routes.
Still, industry analysts believe the impact will be uneven, with non-automotive product lines likely to feel disruptions first. Nexperia produces more than 70 billion components annually across multiple Asian hubs, leaving flexibility for short-term volume reallocation, but also revealing the scale of China’s central role in the company’s global footprint.
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