Nexperia's Chinese subsidiary, after the cessation of supplies by the parent company from the Netherlands, stated that its supply chain is secure, and order fulfillment will continue until the end of the year and beyond.
UNN reports with reference to Reuters.
Details
The Chinese unit of Dutch chipmaker Nexperia said on Sunday that it had built up "sufficient inventories of finished goods and work-in-progress." The supply chain remains robust and stable after the parent company suspended wafer supplies.
In addition, new suppliers of wafers, preliminary products for microchips, are already being sought.
Context
The Dutch company Nexperia suspended wafer supplies to its assembly plant in China on October 26 due to "violations" by the administration in China of "agreed contractual payment terms." Earlier, the Dutch government took control of Nexperia, separating it from its Chinese owner Wingtech Technology.
Recall
China has increased its global competitiveness in some areas highlighted in the previous plan, such as electric vehicles and biotechnology. The development of its own semiconductor supply chain has also become a key task amid growing geopolitical tensions.
US President Donald Trump said that further talks between Beijing and Nvidia would take place after his meeting with Chinese leader Xi Jinping. This indicates no significant change in Washington's control over technology exports.