01.Latest Developments of Nexperia

In an open letter, Nexperia stated that it is still seeking constructive cooperation with its various entities in China and has been requesting candid dialogue to find a way forward to resume normal supply. Nexperia B.V. has made multiple attempts, both formal and informal, through various means to restart dialogue with its Chinese entities, including direct calls, emails, meeting proposals, putting forward a number of mutually beneficial cooperation plans, and even formally requesting the fulfillment of relevant rights through official letters.

Regrettably, Nexperia has not received any substantive response yet. We urge your side to respond to Nexperia’s contacts and engage in communication with a constructive attitude, focusing on restoring supply chain operations, as this is in the common interests of all stakeholders, including our customers.

Customers across multiple industries continue to report the risk of imminent production suspension.

A day earlier, on November 26, the Ministry of Commerce of China indicated that the improper administrative and judicial interventions imposed by the Netherlands on Nexperia have not yet been lifted.

Wang Wentao, Minister of Commerce of China, held a video meeting with Valdis Dombrovskis, European Commission Executive Vice-President for Trade and Economic Security, conducting in-depth exchanges of views on economic and trade issues including Nexperia.

Wang Wentao said that regarding the Nexperia issue, the root cause and responsibility for the current disruption of the global semiconductor supply chain lie with the Dutch side. Recently, the Dutch side announced the suspension of the administrative order, taking a small step towards a proper resolution of the issue. However, the Dutch side’s improper administrative and judicial interventions against the enterprise remain in place, and the global semiconductor supply chain has not returned to normal, still facing considerable uncertainties. It is hoped that the European side will play a positive role in urging the Dutch government to put forward a constructive solution as soon as possible and create favorable conditions for the enterprise to conduct internal consultations.

Both sides agreed that enterprises are the main entities responsible for resolving the Nexperia issue, and will jointly urge Nexperia Netherlands and Nexperia China to carry out constructive communication as soon as possible, find a long-term solution, and restore the smoothness and stability of the global semiconductor supply chain at an early date.

According to Nexperia’s official website, Germany and the UK serve as its manufacturing hubs. It has three assembly and testing factories, among which the factory located in Dongguan, Guangdong Province, is the largest small-signal component factory with an annual output exceeding 50 billion units.

Previously, Nexperia China issued an announcement letter to customers stating that Nexperia Netherlands unilaterally decided to stop supplying wafers to its Dongguan Assembly and Testing Factory (ATGD) starting from October 26, 2025.

The wafer supply issue has been the focus of the Nexperia incident, but it has not yet been clearly resolved.

The following is a collation of information released by relevant official authorities and authoritative media since the outbreak of the Nexperia incident:

November 1: The Chinese side announced export exemptions for Nexperia that meet the specified criteria.
November 2: Nexperia China issued an announcement letter to customers, stating that Nexperia Netherlands unilaterally decided to stop supplying wafers to its Dongguan Assembly and Testing Factory (ATGD) starting from October 26, 2025.
November 7 (local time): The Dutch government claimed that China would resume chip supply soon.
November 8: The Chinese side agreed to the request of the Dutch Ministry of Economic Affairs to send a delegation to China for consultations.
November 13: According to a report by JW Insights, auto industry officials revealed that the Dutch branch of Nexperia has not been shipping silicon wafers to its Chinese subsidiary for assembly.
November 13: Dutch Minister of Economic Affairs Micky Adriaansens stated in an interview with The Guardian that she has “no regrets” about the Dutch government’s decision to take over Nexperia on September 30.
November 14: The Dutch Minister of Economic Affairs said that a Dutch government delegation will travel to China “early next week” to seek a resolution to the issue concerning Nexperia, a subsidiary of Chinese company Wingtech Technology.
November 14: The Ministry of Commerce responded to Micky Adriaansens’ remarks in the interview, expressing extreme disappointment and strong dissatisfaction with such confusing, reversed and arbitrary comments. The Dutch Ministry of Economic Affairs declined to comment on the same day.
November 19: Dutch Minister of Economic Affairs Micky Adriaansens issued a statement on social media platform X, saying that she has “suspended the intervention against Nexperia”.
November 19: Wingtech Technology issued an announcement stating that the company’s current control over Nexperia is still restricted.
November 19: The Ministry of Commerce stated that the Chinese side welcomes the Dutch side’s initiative to suspend the administrative order on Nexperia, regarding it as a first step in the right direction towards a proper resolution of the issue. However, there is still a gap between this measure and addressing the root cause of the turbulence and disruption in the global semiconductor supply chain.
November 20: Wingtech Technology released the Statement on the Suspension of the Administrative Order by the Dutch Ministry of Economic Affairs on its official WeChat public account. The statement pointed out that although the administrative order has been announced to be suspended, the emergency measures issued by the Enterprise Chamber of the Amsterdam Court in the Netherlands have not been lifted. The Dutch Ministry of Economic Affairs is obligated to completely and comprehensively resolve the Nexperia issue, and Wingtech Technology’s complete rights as a shareholder and legitimate control over Nexperia must be restored.
November 23: Wingtech Technology released the Statement on Urging Nexperia Netherlands to Earnestly Respond to Communications and Resolve the Control Rights Issue to Ensure Global Supply Chain Stability on its official WeChat public account. The statement said that the company has noticed a series of unilateral actions taken by Nexperia Netherlands and relevant parties, which have posed a potential threat to the stability of the global semiconductor industry chain.Wingtech Technology demanded in the statement that Nexperia Netherlands, on the basis of respecting facts and laws, put forward a constructive and genuinely sincere solution on how to restore Wingtech Technology’s legitimate control rights and complete shareholder rights.
November 26: The Ministry of Commerce of China stated that the improper administrative and judicial interventions imposed by the Netherlands on Nexperia have not yet been lifted.
November 27: Nexperia Netherlands published the Open Letter from Nexperia B.V. to the Leadership of Nexperia’s Entities in China on its official website.

02.Changes in the Market

After turning quiet in November, the spot chip market remained in a wait-and-see state for the first two weeks. This week, the market was generally calm but saw some new changes: the supply of goods in the market began to increase, especially for batches with the code 2540+. Demand still exists, but the acceptable prices have declined, mainly driven by foreign trade needs. Some chip distributors reported that demand started to pick up compared with last week.

Based on previous analysis, the main reasons for the quiet market are as follows: the circulated “China-EU Minutes on Rare Earth and Semiconductor Supply Chain Coordination” on November 1 (later refuted as fake), which led chip traders to sell off stocks and prices to drop; the Dutch government’s claim on November 7 that China would resume chip supply soon, coupled with some auto suppliers announcing that they have obtained export exemptions; overseas customers having completed phased stockpiling by the end of September and mid-October; and the advancement of alternative solutions by manufacturers such as ON Semiconductor, Texas Instruments, Vishay, Diodes, and Rohm.

Previously, we learned that some major traders are still selectively purchasing certain types of chips. This is reflected in the spot chip market with obvious differentiation in transactions of different part numbers. Some chip distributors said that prices of some part numbers remain high, while those of others have fallen back to historical levels, but some also expressed uncertainty about whether these chips have truly returned to their historical prices. Market quotations are rather chaotic, with a significant gap between market prices and transaction prices.

At the same time, some agents reported that they are currently focusing on order-based sales. Original factory prices have increased, and system order prices have basically risen by more than 30% compared with the original prices. Many terminal customers who have been placing orders continuously are complaining, and demand has been somewhat suppressed.

Based on the current information, the Netherlands has suspended the ministerial order on Nexperia, and the situation has eased to some extent. However, the Dutch side’s improper administrative and judicial interventions against the enterprise have not been lifted, and the core issue of wafer supply has not been resolved. The market has gradually recovered from the wait-and-see sentiment of the previous two weeks, with an increase in supply but obvious differentiation in transactions.