[News] Nexperia Reportedly Expanding in Southeast Asia; Wingtech Sister Firm Said to Supply China Plant

A widening rift between Nexperia’s China and Netherlands operations is stirring concern across the global auto industry. According to Bits&Chips, sources say the European arm of Nexperia is accelerating efforts to expand its assembly and testing capacity outside China. The company’s Malaysian and Philippine facilities, originally built with excess floor space, are now set to install new equipment.

However, the report notes that expanding the Malaysian and Philippine plants is not a short-term solution, as the process is expected to take more than a year to complete. Alongside these plans, Nexperia is also pursuing new external packaging partners, Bits&Chips adds, citing sources.

Nexperia China Reportedly Secures Local Wafer Supply, as Wingtech Sister Company Comes Into Focus

Meanwhile, Nexperia China stated that its production remains unaffected, noting that it has secured new wafer suppliers and can continue meeting client demand through the end of the year and beyond, as stated by South China Morning Post.

The most likely domestic wafer supplier for Nexperia China is believed to be Shanghai Dingtai Jiangxin Technology, or WingSkySemi — a sister company of Wingtech Technology, Nexperia’s Chinese parent — according to South China Morning Post, citing sources.

WingSkySemi’s production output of about 30,000 wafers per month remains small compared with the 83,000 wafers produced monthly at Nexperia’s Hamburg plant in Germany, the report points out. In addition, according to South China Morning Post, citing industry experts, it could take Nexperia China six to twelve months to certify new wafer suppliers for automotive use due to stringent safety standards.

South China Morning Post adds that most Chinese wafer fabs focus on medium- and low-voltage chips, while foreign firms such as Infineon and STMicroelectronics specialize in high-voltage products. As a result, even if Nexperia China were to seek supplies from these European companies, their production capacity is already fully booked.

Nexperia Netherlands last week halted wafer shipments to its assembly and testing plant in Dongguan — a southern Chinese manufacturing hub that accounts for about 70% of the company’s global output, according to South China Morning Post.

Tensions Flare as China Accuses Netherlands of Undermining Chip Supply Chain

Tensions between the Dutch government and China over the chipmaker show no signs of easing. According to Reuters, China has blamed the Netherlands for creating “turmoil and chaos” in the global semiconductor supply chain following the Dutch government’s seizure of Nexperia, warning that the move could trigger further disruptions across the industry.

The country said it had announced on November 1 that it would grant exemptions for eligible exports and work to facilitate the resumption of supply from Nexperia China; however, the Netherlands has taken no concrete steps to resolve the issue, according to press release from Ministry of Commerce of People’s Republic of China.

Beijing’s warning of further disruptions comes as European auto suppliers seek exemptions from China’s export controls on Nexperia products made in China, which were imposed shortly after the Dutch government’s seizure, according to Reuters.

Read more

• [News] Nexperia China Says Supply Stable Through Year-End, Alleges ¥1B Debt by Dutch Arm
• [News] Nexperia China Arm Defies HQ; Parent Wingtech Flags Cash-Flow Strain Despite 280% Q3 Profit Jump

(Photo credit: Nexperia)