Exclusive-Nexperia's China unit switches to local firms for wafer supplies, document shows

Core Viewpoint - The Chinese unit of Nexperia has secured silicon wafer supplies from local firms to ensure production of IGBT power chips for 2026, following a corporate dispute that halted supplies from its Dutch parent company [1][5]. Group 1: Supply Chain Developments - Nexperia's Chinese unit has declared independence from Nexperia's European management and has locked in wafer production capacity for IGBT products with local suppliers [2][5]. - The company is accelerating the verification of wafers from Wingtech's foundry, Wingsky Semi, to ensure a stable supply [5]. - Nexperia China has reported low wafer inventory at its factory in Dongguan, Guangdong province, due to the lack of expected supply resumption from the Netherlands [8]. Group 2: Corporate Dispute Background - The dispute originated when the Dutch government took control of Nexperia from its Chinese parent, Wingtech, in September, citing governance issues, which led to a suspension of wafer supplies [3]. - A Dutch court ordered the removal of Wingtech's founder as Nexperia CEO, escalating tensions between the two parties [3]. - Both governments have relaxed their measures recently, but ongoing court battles and internal conflicts over control of Nexperia persist [4]. Group 3: Financial Implications - IGBT products are projected to account for approximately 0.1% of Nexperia's total revenue in 2024, indicating limited financial impact from the current supply chain issues [6].