Exclusive-Nexperia’s China unit switches to local firms for wafer supplies- document
Dec 19 (Reuters) – The China unit of Netherlands-based Nexperia has locked in supplies of silicon wafers from local firms to meet the full 2026 production of a key product after the Dutch firm halted supplies of raw materials due to a corporate dispute.
This development will allow the Chinese unit, which declared itself independent from Nexperia’s European management two months ago, to continue producing Insulated Gate Bipolar Transistor (IGBT) power chips and modules, switches that regulate current in electric vehicles and industrial equipment.
The dispute began when the Dutch government seized control of Nexperia from its Chinese parent company Wingtech in September, citing management issues. In late October, supplies of wafers to the Chinese unit were suspended, while a Dutch court ordered Wingtech’s founder to be removed as CEO of Nexperia.
Beijing responded by halting exports of Nexperia’s finished products, triggering chip shortages for global automakers.
Both governments relaxed their measures last month, but court fights and infighting over control of Nexperia continue; China and Wingtech warn that disruptions could continue without a long-term solution.
In a letter sent to its distributors earlier this month and seen by Reuters, Nexperia’s China unit said it had locked in wafer production capacity with local suppliers for IGBT products for 2026 and was accelerating verification of wafers from Wingtech’s foundry Wingsky Semi to ensure “ample supply”.
The previously unreported move points to further supply chain separations that could lead to a full spin-off between Nexperia China and its Dutch parent company.
Nexperia told Reuters it was not in contact with its Chinese subsidiary and that the unit “does not intend to negotiate a short-term solution to restore the flow of chips to customers.”
Nexperia China did not immediately respond to a request for comment.
Beijing last week called on the Dutch government to implement their consensus on promoting talks between Nexperia and Wingtech, urging the chipmaker to send representatives to China for talks as soon as possible.
WAFER STOCKS ARE DECREASING
Nexperia China has told local distributors that wafer inventory at its factory in Dongguan in China’s southern Guangdong province is low because supplies from the Netherlands are not expected to resume anytime soon, a person familiar with the matter said.
According to the source, low wafer inventory has begun to cause shortages of Nexperia chips for Chinese automakers, especially logic devices, transistors and diodes, which are Nexperia’s most popular products.
