01 What Happened Yesterday?

• November 1: China announced export exemptions for eligible Nexperia semiconductor products.
• November 2: Nexperia China issued an open letter to customers, stating that Nexperia Netherlands had unilaterally decided to halt wafer supplies to its packaging and testing facility in Dongguan (ATGD) starting October 26, 2025.
• November 7 (local time): The Dutch government stated that China would soon resume chip supplies.
• November 8: China agreed to the Dutch Ministry of Economic Affairs' request to send a delegation to China for consultations.
• November 13: According to Jiemian News, automotive industry officials revealed that Nexperia's Dutch subsidiary had not been shipping silicon wafers to its Chinese subsidiary for assembly.
• November 13: In an interview with The Guardian, Dutch Minister Micky Adriaansens expressed "no regrets" about the Dutch government's decision to take over Nexperia on September 30.
• November 14: The Dutch Minister of Economic Affairs announced that a Dutch government delegation would travel to China "early next week" to seek a resolution to the issue involving Nexperia, a subsidiary of Chinese firm Wingtech Technology.
• November 14: China's Ministry of Commerce responded to Adriaansens' remarks in the interview, stating that China is "extremely disappointed and strongly dissatisfied" with such misleading, inverted, and willful comments. The Dutch Ministry of Economic Affairs declined to comment the same day.
• November 17 (local time): DutchNews reported that the Dutch delegation was visiting China that week.
• November 19: Dutch Minister Micky Adriaansens issued a statement on X, announcing the "suspension of interventions against Nexperia."
• November 19: Wingtech Technology announced that its control over Nexperia remains restricted.
• November 19: China's Ministry of Commerce welcomed the Netherlands' suspension of the administrative order, calling it a positive first step but noting that gaps remain in addressing the root cause of global semiconductor supply chain disruptions.

02 What Changes Have Occurred in the Market?

• November 17: Nikkei reported that Honda plans to gradually resume production at its North American factories starting November 24, which had been halted due to chip shortages.
• November 18: Bosch stated that thousands of its employees are facing production disruptions, with supply issues affecting three facilities: Ansbach and Salzgitter in Germany, and Braga in Portugal. "We continue to do everything possible to prioritize customer needs to avoid or minimize production restrictions," the company said.
• November 18: ZF Friedrichshafen AG announced that its chip supply will remain stable until mid-next week. A spokesperson added that no layoff or furlough measures are needed before then, "but this cannot be ruled out afterward."
• November 18: An informed source revealed that Japan's Nissan Motor will further cut production at its Kyushu plant next week, reducing output by approximately 1,400 units.
• November 18: The head of Volkswagen Brand stated that Volkswagen has secured sufficient chips for production, while other automakers continue to grapple with supply shortages triggered by the trade dispute involving Nexperia.

01 What is Nexperia’s current status?

• October 18: According to an on-site investigation report by National Business Daily, Nexperia’s Dongguan packaging and testing plant had full orders, but due to raw material shortages and staffing issues, some positions would switch to a "four-day workweek with three days off" starting that week, with corresponding reductions in overtime hours.
• October 27: South China Morning Post reported that a worker at Nexperia’s Dongguan plant stated that approximately one-third of the production line machinery in his workshop had been idle for about a week due to a shortage of wafers, which are typically supplied by Nexperia’s German and UK fabs.
• November 1: China announced export exemptions for eligible Nexperia Semiconductors products.
• November 2: Nexperia China issued an announcement to customers, confirming Nexperia Netherlands’ unilateral suspension of wafer supplies to ATGD starting October 26, 2025. The announcement also noted that Nexperia China had built sufficient inventories of finished products and work-in-progress to stably meet customer orders through the end of the year and beyond, ensuring a reliable supply chain.
• Around November 1-2: Unverified rumors circulated within the industry, claiming that under a "China-EU Interim Coordination Minutes on Rare Earth and Semiconductor Supply Chains," Nexperia Netherlands would reinstate its former CEO, unfreeze assets, and establish a fast-track approval process for the Dongguan plant.
• November 4: WeChat articles adapted from the above rumors went viral. On the same day, the Ministry of Commerce spokesperson responded to questions about Nexperia, stating that while China had announced export exemptions on November 1 to promote the resumption of supply by Nexperia China, the Netherlands had continued to act arbitrarily without taking practical steps to resolve the issue. This indirectly confirmed that wafer supplies had not resumed.
• November 5: Caixin reported that a Nexperia (Netherlands) spokesperson stated, "We are aware of the circulating media reports and can confirm they are false." The rumors were officially debunked.
• November 5: Jiemian News reported that Nexperia Netherlands warned there was no guarantee when shipments from its Chinese plant would resume.
• November 7 (local time): The Dutch government claimed China would soon resume chip supplies.
• November 8: China agreed to the Dutch Ministry of Economic Affairs’ request to send personnel to China for consultations.
• November 9 (local time): Reuters reported that several automotive component manufacturers, including a subsidiary of Germany’s Continental AG and auto supplier Aumovio, stated on November 7 (local time) that they had received the first batch of Nexperia chips from China.
• November 13: Jiemian News reported, citing automotive industry officials, that Nexperia Netherlands had still not shipped silicon wafers to its Chinese subsidiary for asembly .
• November 14: The Netherlands announced that a government delegation would travel to China next week to negotiate the Nexperia Semiconductors dispute.

02 Why has the market gone quiet?

[Semiconductor Glossary] Integrated Circuit (IC)

What is an integrated circuit?

 An integrated circuit (IC), sometimes referred to as a chip, microchip, or microelectronic circuit, is a nanoscale electronic component or system in which multiple electronic circuit elements are combined in a non-separable manner on a single circuit board or with the board itself. Transistors, diodes, resistors, capacitors, and other complex electrical components are precisely manufactured to fit a circuit in a semiconductor. So instead of using one semiconductor per section, tens of thousands of them are aggregated and stacked on top of the silicone surface. They are "clustered and stacked", in other words, "integrated", which is why it is called an integrated circuit (IC). In 1958, an American engineer named Jack Kilby of TI invented the integrated circuit (IC). With the progress of technology, circuit integration in semiconductors has been developed into SSI, MSI, LSI, VLSI, ULSI, and so on. Integrated circuits can act as amplifiers, oscillators, timers, counters, logic gates, computer memory, microcontrollers, or microprocessors. Integrated circuits are the basic building blocks of all modern electronic devices. As the name suggests, it is an integrated system in which multiple tiny interconnected components are embedded in a thin substrate of semiconductor material, usually a silicon crystal.