Nexperia China Unit Approaches Full Local Chip Production
Nexperia's China unit is set to achieve near-complete localization of semiconductor manufacturing by late 2026. This shift is crucial for mitigating supply chain disruptions caused by geopolitical tensions and export restrictions.
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Nexperia's Chinese division aims to complete the transition to full local production of semiconductors by the second half of 2026. This move follows a Dutch court's investigation into the company's management and supply chain interruptions affecting automotive production due to chip shortages.
The Chinese unit, Nexperia China, has begun producing chips with domestically sourced 12-inch wafers, circumventing restrictions on silicon wafer supplies from Europe. Previously, wafers were manufactured in Europe, then sent to China for packaging.
The company currently operates its Dongguan packaging facility at 60-70% capacity but anticipates reaching 90% in Q2 this year. The situation underscores the impact of international trade relations on semiconductor supply chains.
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