Amid ongoing control disputes at its Dutch parent company, Nexperia's Chinese subsidiary has moved decisively to ensure its future production. It has secured a domestic wafer supply that will fully cover its 2026 IGBT (Insulated-Gate Bipolar Transistor) production needs, effectively insulating itself from the supply halt originating from the Netherlands.
Background of the Supply Crisis
The supply crisis stems from a corporate governance dispute. In September, the Dutch government took control of Nexperia BV, citing governance issues. In October, Chinese export controls were imposed on Nexperia's Chinese products. Soon after, the Dutch entity suspended wafer shipments to Nexperia's Chinese factories. While some restrictions eased in November, the control battle continues, keeping supply chains at risk.
Strategic Shift to Domestic Suppliers
Facing this uncertainty, Nexperia China has turned to local foundries. The company has locked in IGBT wafer capacity from at least three domestic suppliers for 2026, including Dingtai Jiangxin for 12-inch automotive-grade wafers and Shanghai GAT Semiconductor and Silan Microelectronics for 8-inch IGBT wafers. This move marks a significant step toward de-coupling Nexperia China's supply chain from its Dutch parent, which has stated it has no current plans to resume chip supply to the Chinese unit.
Industry Impact and Market Context
The initial Dutch supply halt has already caused shortages. Reports indicate low wafer inventory at Nexperia's Dongguan plant, contributing to component shortages for Chinese automakers and prompting temporary factory shutdowns by companies like Honda. IGBTs are crucial power devices for electric vehicles and industrial equipment, making a stable supply imperative.
ICgoodFind's Insight
Nexperia China's rapid pivot to domestic wafer sources is a stark example of supply chain localization driven by geopolitical friction. It highlights the growing resilience—and fragmentation—of China's semiconductor supply chain for critical automotive components.
