How Nexperia's China unit can meet chip orders amid European fabs' suspended wafer supply

Core Viewpoint - Nexperia's China unit is expected to secure domestic wafer supply despite current challenges, with a focus on maintaining production for the global automotive industry [1][6]. Group 1: Domestic Supply Chain - Nexperia China is anticipated to receive wafer supplies from several Chinese fabs, including Wuxi NCE Power, Hangzhou Silan Microelectronics, and Yangjie Technology [2]. - An alternative domestic wafer supplier could be Shanghai Dingtai Jiangxin Technology, a sister company of Wingtech Technology [3]. Group 2: Investment and Production Capacity - WingSkySemi, part of Wingtech, has invested 12 billion yuan (approximately US$1.7 billion) in a Shanghai fab for 12-inch wafers, which is seen as a strategic pivot for the Chinese market [5]. - Nexperia China is accelerating the qualification of new wafer supply sources and is confident in meeting customer demands starting next year [8]. Group 3: Customer Assurance and Contingency Plans - Nexperia China has multiple contingency plans and sufficient inventory to ensure a secure chip supply [7]. - The company is focused on reassuring customers about uninterrupted production, especially in light of recent export ban considerations by China's Ministry of Commerce [6].