Nexperia Warns Clients of Unreliable Supply and Quality from China Factory

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Nexperia has issued a stark warning to its customers regarding its factory in Dongguan, China, stating it can no longer guarantee delivery timelines or product quality from the facility. The announcement highlights the escalating impact of export controls on the global chip supply chain.

The crisis stems from the Dutch government's move to take control of Nexperia, citing concerns about its Chinese parent company, Wingtech. In response, Chinese authorities imposed restrictions on Nexperia's Chinese operations. In a letter to clients, Nexperia stated that until it can re-establish oversight over the Dongguan supply chain, it cannot confirm "when or if" products can be delivered.

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Most critically, the company warned that the quality and source security of chips produced from mid-October onward cannot be guaranteed. This marks the second "force majeure" notice from Nexperia in recent weeks, raising fears of potential disruptions to the automotive and consumer electronics industries within weeks.

ICgoodFind : The Nexperia situation intensifies global chip supply chain instability, urging downstream industries to mitigate short-term disruption risks and diversify their sources.

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