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Nexperia’s Chinese unit will be looking for a new wafer supplier in the next six to nine months as a deepening legal and operational dispute with its Dutch parent disrupts supply to one of the world’s largest automotive and industrial chip makers, according to the company. South China Morning Post Report. The dispute has led to production delays and shutdowns at several major automakers, with further plant closures expected in 2026.
At a shareholder meeting held in Shanghai on Friday, December 26, Wingtech, the parent company of Nexperia China, said that its Dongguan manufacturing base in Guangdong Province continues to operate despite “a serious shortfall in wafer supply.” Nexperia’s Dutch headquarters in Nijmegen decided on October 29 to suspend wafer shipments to Chinese factories after Nexperia China refused to pay for delivered wafers. Wingtech Technology said that the Netherlands has also restricted internal fund transfers.
In response, Nexperia China has begun validating domestic wafer suppliers, a process expected to be completed between the first and second quarters of 2026. Although Wingtech did not reveal supplier names at the conference, other reports indicate that Chinese fabs are obtaining qualifications to produce 8-inch (Shanghai Gate Semiconductor and Lianxing Technology Co., Ltd.) and 12-inch (Wingsky Semi) power semiconductor wafers for IGBT devices for automotive and industrial applications.
Despite the disruption, Wingtech told shareholders that Nexperia China has produced and delivered more than 11 billion chips to more than 800 customers around the world since mid-October. That’s down 14% from annual production of more than 110 billion devices before the Nexperia controversy. The Dongguan plant historically accounts for about 70% of Nexperia’s total production, underscoring its importance to the company’s global supply chain.
The disruption has caused downstream automakers to temporarily suspend production, with further production shutdowns planned for early 2026. On October 28, Honda halted production at its Mexican assembly plant and adjusted production at its plants in the United States and Canada due to a shortage of parts supplied by Nexperia. The company has since announced further shutdowns at several Japanese factories scheduled for January 5-6 and reduced operations until January 9.
All of this comes amid a broader legal battle over control of Nexperia. On September 30, the Dutch Ministry of Economic Affairs invoked the 1952 Supply of Goods Act to temporarily seize control of the Dutch chip manufacturer on the grounds of national security. The move bans Nexperia from moving assets without government approval for one year. Days later, China’s Ministry of Commerce issued export control measures restricting Nexperia China and its subcontractors from exporting certain finished parts and subassemblies.
