Nexperia China Ensures Future Chip Supply Amid Corporate Conflict

Nexperia's Chinese unit secures local wafer supplies for 2026, ensuring continued production despite a dispute with its Dutch parent over control. While Beijing and the Dutch relaxed certain measures, ongoing disputes may lead to further supply chain separations and potentially a complete corporate split.

Nexperia China has successfully secured a local supply of silicon wafers, enabling the unit to maintain its production of power chips for 2026. This move follows a corporate dispute that led the Dutch parent to halt material supplies, prompting the China unit to declare independence from European management.

The conflict began when the Dutch government assumed control of Nexperia from Chinese firm Wingtech, citing governance concerns. This action led to the suspension of wafer supplies to China, and Beijing responded by stopping exportation of Nexperia's products, contributing to global chip shortages in the automotive sector.

Efforts toward resolution are ongoing; however, both sides warn of potential future disruptions. Nexperia China is securing wafer production with local manufacturers to ensure supply, marking a deeper separation from its parent company. This situation underscores tensions within the semiconductor supply chain between China and Europe.

(With inputs from agencies.)