Wingtech Chooses Local Suppliers for Nexperia's Silicon Wafers

Nexperia's Supply Chain Strategy

SHANGHAI, Jan 9 (Reuters) - The Chinese unit of Netherlands-based Nexperia is selecting local firms to supply it with silicon wafers and is expanding domestic packaging capacity, Nexperia's Chinese owner Wingtech Technology told financial magazine Caixin.

Interview Insights from Ruby Yang Mu

In an interview published on Friday, which China's Caixin said was conducted in late December, Wingtech's chairwoman Ruby Yang Mu said that the company expected most of the selection process to be completed in the first quarter. 

Impact of Government Actions

Reuters reported in December that the unit had locked in supplies of Chinese-made silicon wafers to cover its entire 2026 production for one type of power chip after Nexperia Netherlands stopped supplying the raw material in a corporate dispute. 

Future of Nexperia's Operations

The Dutch government took control of Nexperia from Wingtech in September, citing governance issues, before suspending supplies of wafers to the Chinese unit the next month. Beijing responded by halting exports of Nexperia's finished products, triggering chip shortages for global automakers.  

Securing local suppliers could allow the Chinese unit to continue manufacturing its chips.

While both governments relaxed their measures last month, court fights and an internal battle continue over control of Nexperia.

Yang said in the interview that Wingtech was still looking to regain control of Nexperia. 

"The current fragmentation leads to duplicated investment and exposes Nexperia to competitive risks, ultimately harming the company’s overall interests," she said. 

A Dutch court will hold a hearing on January 14 to hear arguments over whether it should formally investigate alleged mismanagement at Nexperia.

Nexperia Netherlands did not immediately respond to a request for comment. 

(Reporting by Brenda Goh; Additional reporting by Toby Sterling in Amsterdam; Editing by Kirsten Donovan)