Informal Europe: the Chinese Nexperia plant has begun producing chips without silicon wafers.

New steps by Nexperia’s Chinese subsidiary amid conflict with the Netherlands

Since Dutch authorities attempted to take control of Nexperia’s holding structure in early October last year, the parties have exchanged mutual accusations. In such an environment, establishing factual truth has become almost impossible.

Nexperia’s Chinese subsidiary announced that it can now produce its products without access to silicon wafers from Europe. This decision came after the Dutch office of the company disabled access for employees of the Chinese division to the corporate information system – signaling a continuing multi‑month conflict.

How the supply chain used to work
- Wafer processing: In Germany and the United Kingdom, silicon wafers were initially processed.
- Shipping to China: After processing they were shipped to China, where semiconductor components – transistors, diodes, protective elements, etc. – were manufactured from them.

Nexperia controls about 40 % of the global market for transistors and diodes. This means its influence extends beyond automotive electronics: household appliances, power supplies, motherboards, and chargers also depend on the company’s products.

Transition to new wafers
- New sizes: The Chinese “daughter” has switched to 300 mm silicon wafers. This allows increased volumes of final product output and reduced unit cost.
- Technological adaptation: The transition was not simple – significant modernization of production lines is required to work with larger wafers.

Currently Nexperia plans to produce single bipolar transistors, Schottky diodes, and electrostatic discharge protection devices based on these new wafers. A supplier for 12‑inch silicon tiles has not yet been announced, but it is known that the Chinese company Wingtech, which effectively owns Nexperia in China, has a specialized plant in Shanghai from which the necessary materials could be supplied.

In Europe, the parent company still uses 200‑mm wafers and does not adopt production of larger tiles. In the midst of the conflict, some customers transported silicon wafers themselves from Europe to China to avoid interrupting chip production.

Conclusion
Nexperia’s Chinese subsidiary has achieved a certain degree of raw material independence from European imports. This allows it to continue producing the required components even with limited access to external supplies and ensures production resilience amid an ongoing dispute with the Dutch office.