BEIJING — March 9 (GeokHub) - The Chinese subsidiary of semiconductor manufacturer Nexperia announced it has begun producing its own chips using advanced 12-inch wafer technology, marking a significant step toward operational independence amid an ongoing dispute with the company’s European headquarters.
In a statement shared Monday through its Chinese social media channels, Nexperia China revealed that it has started manufacturing several types of semiconductor components previously produced by the broader Nexperia network. The difference lies in the production process — the Chinese operation is now using 12-inch wafers, a manufacturing size that the company’s European facilities are currently unable to produce.
The development highlights the growing divide within the global chipmaker following tensions that began in late 2025. The conflict emerged after the Dutch government intervened to block plans that would have expanded the company’s operations in China, a move that disrupted existing manufacturing arrangements and strained relationships within the organization.
Before the intervention, the semiconductor supply chain operated across multiple regions. Wafer production primarily took place in Europe, while assembly and packaging of chips occurred in China. The arrangement allowed the company to maintain a distributed production system supporting industries worldwide, including automotive manufacturing.
However, the situation changed dramatically after the dispute escalated. The Chinese subsidiary moved to operate independently while the European division halted wafer shipments to China, citing unresolved financial issues and contractual disagreements.
Now, by producing chips domestically with larger wafers, the Chinese operation is signaling its intention to maintain production despite the split.
According to the announcement, the newly manufactured components include bipolar discrete devices, Schottky rectifiers and electrostatic discharge protection chips — essential electronic parts widely used in automotive electronics, industrial systems and consumer devices.
While the company confirmed it is using 12-inch wafers, it did not disclose the exact source of those wafers. Industry observers speculate that the materials may be supplied through facilities connected to Wingtech Technology, the Chinese electronics firm that owns Nexperia.
The founder of Wingtech, Zhang Xuezheng, is also linked to a semiconductor manufacturing facility in Shanghai known as WingSkySemi, a plant capable of producing 12-inch wafers. The facility previously collaborated with Nexperia before the dispute intensified.
The breakthrough arrives at a sensitive moment for global supply chains. The standoff between the European headquarters and the Chinese subsidiary has already created uncertainty for industries dependent on reliable chip deliveries, particularly automotive manufacturers that rely on steady semiconductor supplies.
Analysts say the move by Nexperia China could reshape how the company operates globally if the split becomes permanent.
