Exclusive-Nexperia cuts wafer supplies to Chinese plant, ratcheting up chip disruptions

BEIJING/TAIPEI (Reuters) -Dutch chipmaker Nexperia has suspended supplies of wafers to its Chinese assembly plant, according to a letter addressed to its customers that was reviewed by Reuters, which could exacerbate a supply squeeze that is worrying automakers worldwide. The letter, which was dated October 29 and signed by Nexperia interim CEO Stefan Tilger, said the company imposed the suspension on supplies to its plant in Dongguan, in southern China's Guangdong province, on October 26, saying it was "a direct consequence of the local management's recent failure to comply with the agreed contractual payment terms." Since earlier this month, Nexperia has been locked in a dispute with its Chinese unit after the Dutch government took control of Nexperia from its Chinese owner Wingtech Technology on September 30.