The Chinese unit of Netherlands-based chipmaker Nexperia is selecting domestic companies to supply silicon wafers and is expanding local chip packaging capacity, its Chinese owner Wingtech Technology told financial magazine Caixin.
In an interview published on Friday, Caixin said Wingtech chairwoman Ruby Yang Mu stated that most of the supplier selection process is expected to be completed in the first quarter. The move is aimed at strengthening the Chinese unit’s supply chain amid ongoing corporate and geopolitical tensions.
Reuters reported in December that the Chinese unit had already secured supplies of domestically produced silicon wafers to cover all of its 2026 production for a specific type of power chip. This followed a halt in wafer supplies from Nexperia’s Dutch operations during a corporate dispute.
The tensions escalated after the Netherlands government took control of Nexperia from Wingtech in September, citing governance concerns, and subsequently suspended wafer supplies to the Chinese unit the following month. In response, China halted exports of Nexperia’s finished products, triggering chip shortages for global automakers.
Although both governments eased their measures last month, legal disputes and internal struggles over control of Nexperia continue. Yang said Wingtech is still seeking to regain control of the company, warning that the current fragmentation could hurt Nexperia’s competitiveness.
“The current fragmentation leads to duplicated investment and exposes Nexperia to competitive risks, ultimately harming the company’s overall interests,” Yang said in the interview.
A Dutch court is scheduled to hold a hearing on January 14 to consider whether to formally investigate alleged mismanagement at Nexperia. Nexperia’s Dutch entity did not immediately respond to a request for comment.
