【By Observer News, Pan Yuchen / Editor: Gao Xin】According to a report by Reuters on October 31, the content of a letter from NXP Semiconductor to its customers shows that NXP Semiconductor has suspended the supply of wafers to its Chinese factory.

The letter was signed by NXP Semiconductor's interim CEO Stefan Tilger on October 29. The letter states that NXP Semiconductor has suspended the supply of wafers to its factory in Dongguan, Guangdong, as of October 26, and said this is a direct consequence of "NXP China's recent failure to comply with agreed contractual payment terms."

The letter also states that unless "contractual obligations are fully fulfilled," it will not be possible to resume the supply of wafers to the Dongguan factory. NXP Semiconductor also said it is seeking alternative solutions to ensure continued wafer supply to its customers and stated that this decision does not mean it will exit the Dongguan factory or the entire Chinese market.

NXP Semiconductor also stated that it is financially independent from Wintech Technology and will not raise funds from Wintech Technology.

In response to the news, NXP Semiconductor's headquarters confirmed that the letter had been sent, but stated that it could not comment further. NXP China and Wintech Technology did not respond immediately to the request for comments.

Wafers produced at NXP Semiconductor's Dutch factory - Reuters

According to a Reuters report, the release of this letter from NXP Semiconductor coincided with NXP China resuming chip supplies to local customers, but requiring all sales to distributors to be settled in RMB. Previously, transactions were settled in foreign currencies such as USD.

About 70% of the chips produced in the Netherlands by NXP Semiconductor are packaged in China, mainly sold to distributors. The escalation of the NXP Semiconductor dispute has raised concerns in the industry about chip supply. According to sources, the price of NXP products, which used to be just a few cents, has risen to between two and three yuan per unit over the past two weeks, more than ten times the original price.

Previously, on October 7, a Dutch court ruled to suspend Zhang Xuezhen, founder of Wintech Technology, from his positions as non-executive director of NXP Semiconductor and executive director of NXP Semiconductor, and appointed personnel designated by the Dutch side to represent NXP Semiconductor, and placed all shares (minus one) of NXP Semiconductor under the custody of the designated personnel.

Against this backdrop, on October 4, the Chinese Ministry of Commerce issued an export control notice prohibiting NXP China and its subcontractors from exporting specific finished components and subcomponents produced in China.

On October 19, NXP China issued an open letter to its employees. The letter emphasized that all employees should continue to follow the work instructions of NXP's domestic company. Employees have the right to refuse to execute any external instructions not approved by the legal representative of NXP's domestic company without constituting a violation of work discipline or laws and regulations.

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Original: https://www.toutiao.com/article/7567324262470550025/

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