Nexperia’s China Unit Resumes Chip Sales Across Domestic Market with Yuan-Only Policy

Nexperia’s China division has quietly resumed semiconductor shipments to domestic distributors after a pause triggered by export controls linked to a corporate dispute. Sources say the resumed trade comes with a notable twist: every transaction must now be settled in Chinese yuan instead of U.S. dollars or other foreign currencies.

The policy shift is part of a broader move by the Chinese unit to assert greater operational independence. Distributors have been instructed to transact with their own downstream customers in yuan as well, reinforcing a domestic chain isolated from its Dutch parent. Before the pause, China had prohibited exports of chips made on its soil after the Dutch government seized control of Nexperia over concerns about technology transfer.

Despite restarting sales, the Chinese arm has issued cautionary notices: it cannot guarantee the quality of its products, leaving some clients wary. Meanwhile, Nexperia’s parent (under Dutch government control since September 30) continues to pursue alternative packaging partners outside China—a plan it says predates the dispute, but has now acquired renewed urgency.

This development comes amid growing strain in global chip supply lines. Automakers in Europe and the U.S. have already flagged the possibility of production disruptions if Nexperia’s output falters. Analysts say the yuan-only approach may help stabilize supply within China but likely deepens the rift between Nexperia’s Chinese operations and its global business.