Nexperia’s China Unit Secures Local Wafer Supply Amid Ongoing Control Dispute
GeokHub
Contributing Writer
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Nexperia’s China Unit Secures Local Wafer Supply Amid Ongoing Control Dispute
BEIJING — Dec 19 (GeokHub) The China-based unit of semiconductor firm Nexperia has secured silicon wafer supplies from domestic manufacturers to support its entire production of key power chips in 2026, according to internal documents, as a prolonged corporate and geopolitical dispute disrupts its traditional supply chain.
The move allows the Chinese unit to continue manufacturing insulated-gate bipolar transistor (IGBT) power chips and modules, components widely used in electric vehicles and industrial equipment, after wafer shipments from Europe were suspended earlier this year.
Supply Chain Shift After Corporate Fallout
The supply agreement follows the Chinese unit’s declaration of operational independence from its European parent two months ago, deepening a rift that has already led to production disruptions and chip shortages.
The dispute escalated after European authorities intervened in Nexperia’s ownership structure earlier this year, citing governance concerns. Subsequent legal actions resulted in management changes and the suspension of wafer supplies to China, prompting Beijing to temporarily restrict exports of certain finished products in response.
Although both sides eased some measures last month, legal proceedings and internal disagreements over control remain unresolved.
Local Suppliers Step In
In a letter circulated to distributors, the China unit said it had secured sufficient wafer production capacity from local suppliers to cover its 2026 needs and was accelerating qualification of wafers from affiliated domestic foundries to ensure stable output.
The arrangement includes both 12-inch automotive-grade wafers and 8-inch wafers used for a range of power and logic devices. The move signals a growing separation between the Chinese operation and its European parent, raising the prospect of a full operational split.
The European parent company said it was not in active communication with the Chinese unit and expressed concern that chip supplies to customers may not be restored without a negotiated settlement.
Impact on Automakers and Industry
Industry sources say wafer inventories at the Chinese factory are running low, contributing to shortages of commonly used chips such as transistors and diodes, particularly for Chinese automakers.
Some manufacturers have already reported temporary production suspensions linked to chip shortages, highlighting the broader impact of the dispute on global supply chains.
Chinese authorities have urged renewed negotiations, warning that further disruptions could occur without a durable resolution.
