Nexperia’s China unit claims supply chain ‘localisation’ as rift with Dutch parent deepens

Nexperia’s Chinese unit says its domestic 12-inch wafer platform now covers all of its product categories, marking a key milestone in building an independent supply chain more than a year after its Dutch parent halted direct shipments of European wafers.

Speaking at the 23rd China International Semiconductor Expo in Beijing on Thursday, Nexperia China CEO John Chang said the local division had partnered with domestic foundries while relying on its own facilities and local contractors to handle chip packaging and testing.

“We have completed the localisation of the entire chain, from product definition and development to manufacturing,” Chang said.

While the company was still migrating existing product lines onto the new platform – a goal it first outlined in August – the shift had already slashed delivery times for some components to four to six weeks, down from 12 to 16 weeks previously, he said.

Chang’s remarks underscore the deepening rift between the two entities, coming just two days after Stefan Tilger, interim CEO of the Dutch chipmaker, told Reuters that the separately run Chinese operations could still rejoin the wider group.

Tilger noted that Nexperia had expanded its chip-packaging footprint in Malaysia to offset the loss of Chinese capacity, though the company remained unable to fully meet global demand.

The stand-off began in September last year when The Hague invoked an emergency law to freeze Nexperia’s assets and prevent intellectual property transfers, amid US sanctions pressure targeting its Chinese parent, Wingtech Technology.

Although the Dutch government later suspended its order following retaliatory Chinese export controls that threatened global car chip supplies, separate court measures restricting Wingtech’s control remain in force.

Tensions have escalated in recent days. Last week, Wingtech rejected a restructuring proposal that would have handed outside investors a controlling stake in the rest of Nexperia while leaving it in charge of the Chinese business.

Meanwhile, the Dutch chipmaker said it launched legal proceedings in the Netherlands seeking about US$2 billion in damages. According to a Wingtech filing, Nexperia alleged that the supply chain built in China disrupted its global operations and created direct competition – claims that Wingtech rejected.