Investors looking for stock insights rely on Jin Qilin analysts' reports for authoritative, professional, timely, and comprehensive information to uncover potential thematic opportunities!
The impact of the Dutch government's intervention concerning Nexperia has now reached the production front lines and the end of the supply chain.
On October 18, reporters visited Nexperia's Dongguan factory, noting that the facility has restricted shipments since the National Day and Mid-Autumn Festival holiday and plans to implement a "four days on, three days off" work schedule starting next week. Simultaneously, traders have confirmed that products are facing shortages and price hikes.
In response to the situation, the parent company, Wingtech Technology (維權) (600745.SH), indicated that it is initiating "independent rescue" measures in China to urgently connect the domestic supply chain to meet customer demands.
But the question remains: how can the domestic supply chain truly be connected?
Many traders are left scrambling across provinces in search of goods.
Just as one issue subsides, another arises. Recently, there have been reports that Nexperia has allegedly suspended payroll for employees in China and shut down system access, while discussions about product shortages and price increases are ongoing across multiple platforms.
Nexperia is headquartered in the Netherlands and has a global business footprint. Wingtech Technology completed a 100% acquisition of Nexperia in 2020 through several capital operations. According to Wingtech's statements on the investor interaction platform in June, the company has established numerous R&D centers, wafer fabs, and packaging testing plants worldwide. Domestically, the semiconductor business has R&D sites in Shanghai, Shenzhen, and Hong Kong, with packaging and testing facilities in Dongguan, Guangdong, and Wuxi, Jiangsu (under construction).
On the afternoon of October 18, reporters visited Nexperia's factory located in Huangjiang Town, Dongguan. Public information indicates that this factory is Nexperia's largest packaging and testing facility, covering approximately 100,000 square meters and employing around 4,000 staff.
Outside the factory, some traders and customers were already gathered. Two customers who traveled overnight from Suzhou (henceforth referred to as "Suzhou Customers") mentioned that they arrived at the factory at dawn on the 17th. "We took the high-speed train over, transferring in Nanchang, and that's over 1,000 kilometers. We got off the train around nine last night and rushed over, saying 'We are customers here to collect goods,' but unfortunately, there's nothing available."
Another trader who came from Shenzhen (henceforth referred to as "Shenzhen Trader") also noted that their company had sent personnel to wait on-site, stating, "There's no alternative; we need to give clients an explanation. It's better to have firsthand information here." They assessed the factory had stopped shipments for over a week but still seemed to be partially operational.
The Suzhou Customers revealed that the factory management simply responded, "We cannot do anything about this situation," without providing a clear statement. According to their observations from the 17th to the 18th, there were occasionally trucks entering and exiting the premises, but they could not confirm if they were for shipping, "In the past two days, many customers and traders came to see the actual situation and take photos."
Nexperia's official website lists its distributors, including Jianghua Fuchang Information Technology (Shanghai) Co., Ltd. On October 18, a staff member from this company confirmed to reporters that Nexperia began restricting shipments after the National Day holiday. Currently, the company has very little inventory of Nexperia's products, and the specific supply situation depends on different models. While the original manufacturer hasn't raised prices, it’s not surprising to see market price increases due to material shortages, and the company may also raise prices in the future.
As for the alleged "suspension of wages and shutdown of system access," reporters on-site questioned several employees but received no confirmation.
The obstruction in the supply chain has begun to impact the production end.
According to Wingtech Technology's 2024 annual report, following the acquisition of relevant semiconductor operations, its ranking among global power discrete device companies has steadily risen from 11th place in 2019 to 3rd place, and it has consistently held the top position in China for several years. Nexperia serves as the carrying platform for Wingtech's semiconductor business.
The turmoil faced by such a leading industry player due to Dutch governmental intervention has prompted responses from Chinese government departments as well. According to information on Nexperia's official site, on October 4, 2025, the Ministry of Commerce of China announced an export control notification prohibiting Nexperia and its subcontractors from exporting specific finished products and components manufactured in China.
In fact, the impact of supply chain disruptions has already cascaded to the production side. An employee at Nexperia's Dongguan factory who claimed to manage production efficiency indicated that due to shortages in certain raw materials and workforce issues, some positions would be adjusted to a "four days on, three days off" schedule starting next week, with overtime reduced from previously 70-80 hours per month to 40-50 hours. "This year, our orders have been full; it's just the issue with raw materials."
The warehouse is experiencing similar abnormalities. A warehouse worker disclosed that the influx of goods post-National Day has consistently exceeded the outflow. "The inventory in the warehouse is increasing; production hasn't halted, and incoming goods are rising. We're running out of space and need to pack the goods that were previously shelved into boxes and then put new goods on the shelves."
Information obtained by the aforementioned Shenzhen Trader corroborated this situation. Their communication with factory employees indicated that the Dongguan factory currently has a certain inventory of raw materials, but the supply is facing phase-specific tension. "Production capacity has indeed adjusted down because of insufficient raw materials. If they don't reduce capacity, there won't be enough raw materials available; it's not that we're entirely out, but it's not sufficient. If raw materials are allocated according to the current schedule, they can only last until the end of December."
Industry expert Chen Qi stated in an interview that Nexperia's core design and wafer production are located in Europe, while the Dongguan factory undertakes approximately 70% of its global product packaging tasks. If restrictions in the Netherlands and China persist, Nexperia's European and domestic operations may be severed, putting both sides in a predicament.
The European Automobile Manufacturers Association (ACEA) expressed concerns in a statement released on October 16. The association noted that although the industry has been sourcing similar chips from other market participants, the certification and capacity ramp-up for new suppliers of specific components will take months, and Nexperia's chip inventory typically only lasts a few weeks.
Chen Qi believes that from an industry perspective, industrial and consumer clients may quickly switch to domestic substitutes, but automotive-grade clients will face greater pressure due to high certification barriers and will need to wait for new suppliers to get certified or for Nexperia's supply chain to stabilize.
What are the challenges in "localizing" the supply chain?
The Dongguan factory is responsible for approximately 70% of Nexperia's global final product shipments and serves as a significant bargaining chip for Wingtech Technology during this incident. Furthermore, the supporting role of the Chinese market cannot be overlooked. According to Wingtech Technology's 2025 mid-year report, revenue from the Chinese market accounted for a staggering 48.17% among its main regional markets, while Europe only contributed 21.72%.
In light of the intervention from the Netherlands, a related official from Wingtech Technology responded to the media on October 18, stating that the China division has initiated "independent rescue" measures and is accelerating the integration of the domestic supply chain to ensure supply for domestic clients.
Regarding the path to supply chain localization, some viewpoints suggest leveraging Nexperia's technology for contractual manufacturing under the control of Wingtech Technology's major shareholder, Ding Tai Jiangxin.
In fact, in recent years, Wingtech Technology has actively promoted Nexperia's supply chain layout in China. According to the company's semi-annual report, it has continued to increase its market share among automotive, industrial, and consumer clients in China while actively advancing the domestic replacement of power discrete devices, power ICs, and analog ICs. The company has also deepened the capacity layout in China with backing from its major shareholder, Wentian Investment, at the Shanghai Lingang 12-inch wafer fab and has successfully upgraded its chip wafer processing platform, significantly enhancing product competitiveness with new generation MOS products reaching internationally leading performance levels.
However, localizing the supply chain isn't straightforward. Chen Qi pointed out that Nexperia's core design and wafer manufacturing remain in Europe. For a true integration of the domestic supply chain, it cannot be limited to packaging; rather, the design and manufacturing stages must also be synchronized within China, which involves complex technology transfer that European factories may not agree to.
Additionally, strict customer certification poses another significant hurdle. The aforementioned Shenzhen Trader explained that if Nexperia opts to switch raw material suppliers, the process requires customer approval, along with validation and production steps, “which will definitely have an impact.”
Although Nexperia stated in a website announcement on October 14 that it is actively applying for regulatory exemptions from relevant Chinese authorities and mobilizing all resources to mitigate the impact, a critical question remains unanswered: "When will supply resume?". On October 18, a staff member from Jianghua Fuchang also mentioned that clarity on this issue is still awaited, pending further notice from Nexperia's headquarters.
Regarding the progress of this incident, as of the time of reporting on October 18, attempts to contact Wingtech Technology went unanswered. At Nexperia's Dongguan factory, reporters' efforts to conduct interviews were not relayed by security staff.
Chen Qi opined that this matter extends beyond the enterprise level and will ultimately depend on communication and decision-making at the official level.
(Note: The content and data in this article are for reference only and do not constitute investment advice. Investors act at their own risk based on this information.)