Key Points
- Nexperia’s Chinese unit has secured its own local supply of silicon wafers for chip production.
- This comes amid a major corporate dispute with its Dutch parent company, which has cut off supplies.
- The Chinese unit has declared itself independent and is now separating its supply chain.
- The corporate battle has already caused chip shortages for global automakers like Honda.
The Chinese unit of chipmaker Nexperia has secured a local supply of silicon wafers. This crucial move will allow it to continue production despite a bitter dispute with its Dutch parent company. The development marks another step in a supply chain separation that could lead to a complete split between the two entities.
The fight began in September when the Dutch government took control of Nexperia from its Chinese parent company, Wingtech. The Dutch government then suspended the supply of raw materials to the Chinese unit, prompting the unit to declare itself independent. This corporate tug-of-war has already caused chip shortages for global automakers.
Now, Nexperia’s China unit says it has secured sufficient wafer supply from local firms to cover its entire 2026 production of a key power chip used in electric vehicles and industrial equipment.
In a letter to its distributors, the company said it was also working to get supplies from a foundry owned by its Chinese parent, Wingtech, to ensure an “abundant supply.”
This move to source materials locally is a direct response to the cutoff from its Dutch parent. A source familiar with the matter said the Chinese factory’s wafer inventory is running low and doesn’t expect supplies from the Netherlands to resume anytime soon. This has already started to cause shortages of Nexperia’s most popular chips for Chinese carmakers.
