Nexperia China Launches Independent Chip Production Amid Rising Tensions

The Chinese subsidiary of chipmaker Nexperia has begun producing its own chips. In a statement posted on social media on Monday, 9 March, the company said it is now manufacturing various types of chips similar to those of its Netherlands-based parent company, but using 12-inch wafers—a size that cannot be produced at the Dutch facility in Europe. Reuters reported the development.

Analysts view this move as a major step toward greater independence from the Dutch parent company. The rift between the parent and the Chinese subsidiary began after the Dutch government intervened in October 2025 to block Nexperia’s efforts to relocate operations to China.

Previously, the company’s business model involved producing wafers in Europe and shipping them to China for chip fabrication. Following the Dutch government’s intervention, the Chinese unit declared itself “independent,” and the parent company ceased wafer supply.

According to the Chinese unit, it is now producing products such as bipolar discrete devices, Schottky rectifiers, and electrostatic discharge devices using 12-inch wafers. These are relatively simple chips that Nexperia had produced previously.

The company has not confirmed the source of the 12-inch wafers. It is speculated that the wafers may be supplied by the Shanghai-based wafer factory (WingSkySemi), which collaborated with Nexperia before the dispute began. The factory is controlled by WingTech founder Zhang Ruizheng.

Last week, prior to this announcement, Nexperia’s European headquarters deactivated all office accounts of its China-based staff, disrupting the Chinese unit’s production processes. In response, China’s Ministry of Commerce warned that the move could create a new global semiconductor supply chain crisis, for which the Netherlands would bear full responsibility.

Market analysts suggest that if Nexperia China successfully establishes its own supply chain, the conflict with the Dutch parent company could intensify. The situation is seen as an example of the broader realignment of the global semiconductor supply chain amid geopolitical pressures and regulatory oversight.

DBTech/BMT/OR