Nexperia’s China Unit Secures Local Wafer Supply Amid Deepening Split with Dutch Parent
Nexperia’s Chinese subsidiary has secured domestic sources of silicon wafers to cover all its 2026 production needs for a key type of power chip, according to an internal document seen by Reuters. The move comes after the Dutch-headquartered semiconductor maker halted wafer shipments to its Chinese unit amid a deepening corporate and political dispute.
Ensuring Continuity in Chip Production
The Chinese unit, which declared independence from Nexperia’s European management two months ago, will now be able to continue manufacturing Insulated-Gate Bipolar Transistor (IGBT) power chips and modules — components critical for electric vehicles and industrial power systems.
The dispute dates back to September, when the Dutch government took control of Nexperia from its Chinese parent company Wingtech Technology Co Ltd, citing governance concerns. Following that move, wafer supplies from the Netherlands were suspended, and a Dutch court ordered Wingtech’s founder to step down as Nexperia’s CEO.
Beijing retaliated by halting exports of Nexperia’s finished semiconductor products, worsening chip shortages for global automakers. Although both governments eased their restrictions last month, legal and internal power struggles continue to threaten the company’s operations.
China’s Move Toward Supply Independence
In a letter sent to distributors earlier this month, Nexperia China said it had secured full wafer production capacity for IGBT products with several local suppliers for 2026. It is also accelerating verification of wafers from Wingtech’s foundry, Wingsky Semi, to ensure a stable supply.
This development marks a major step toward operational separation from the Dutch parent, raising the possibility of a complete split. Nexperia’s headquarters confirmed to Reuters that it has no communication with its Chinese arm and that the subsidiary has shown “no intention to negotiate a short-term solution to restore the flow of chips to customers.”
Nexperia noted that IGBT products represented just 0.1% of its total revenue in 2024, indicating limited financial exposure from the dispute.
Tight Supply and Growing Shortages
Sources familiar with the matter said wafer inventories at Nexperia’s Dongguan factory in southern China are running low, and shipments from the Netherlands are unlikely to resume soon. The shortage has begun affecting Chinese automakers, especially those reliant on logic devices, transistors, and diodes — some of Nexperia’s most in-demand products.
Japanese carmaker Honda Motor Co. confirmed this week that some of its factories in China and Japan would temporarily suspend production due to a shortage of Nexperia chips.
According to the letter, Wingsky Semi will supply 12-inch automotive-grade IGBT wafers, with its Shanghai facility currently capable of producing 30,000 wafers per month. Additional 8-inch wafer supplies will come from Shanghai GAT Semiconductor and United Nova Technology, a fabrication partner linked to Semiconductor Manufacturing International Corp (SMIC).
While the document did not specify exact volumes, the diversified sourcing strategy underscores China’s determination to sustain chip production despite ongoing political and corporate turbulence.
Beijing has urged the Dutch government to implement agreements encouraging negotiations between Nexperia and Wingtech and to send company representatives to China for talks “as soon as possible.”
with inputs from Reuters
