Nexperia’s China unit seeks local wafer suppliers amid dispute – report

Core Viewpoint - Nexperia's Chinese unit is seeking to secure local suppliers of silicon wafers and expand its packaging operations in China to stabilize production after supply disruptions caused by a corporate dispute [1][2]. Group 1: Supply Chain Developments - The Chinese unit of Nexperia has halted wafer deliveries from its Netherlands operation, leading to supply disruptions [2][3]. - The Chinese unit has secured sufficient Chinese-made silicon wafers to meet its entire output needs for one category of power chip by 2026, following the suspension of shipments from the Dutch unit [2]. - Beijing imposed export restrictions on Nexperia's finished products, which contributed to global chip shortages for automakers, but these restrictions were lifted in November, easing supply chain pressures [3]. Group 2: Corporate Governance and Legal Issues - The Dutch government took control of Nexperia from Wingtech Technology due to governance concerns, which initiated the supply disruptions [2]. - Legal proceedings regarding control over Nexperia remain unresolved, with Wingtech appealing to the Dutch Supreme Court against rulings that stripped it of effective control [5]. - A Dutch court is set to hear arguments on January 14 regarding a formal investigation into alleged mismanagement at Nexperia [5]. Group 3: Strategic Implications - Securing local suppliers would allow Nexperia's Chinese operation to continue chip manufacturing independently, reducing reliance on the Netherlands [4]. - Wingtech's chairwoman highlighted that the current fragmentation in the supply chain leads to duplicated investments and competitive risks, ultimately harming the company's interests [4].