On December 19, Reuters reported that Nexperia's Chinese subsidiary has successfully procured a sufficient quantity of silicon wafers from domestic companies. This supply is set to meet its production requirements for a specific type of power chip all the way through 2026. Previously, the Dutch parent company had suspended wafer supplies to its Chinese counterpart amid a corporate dispute. Analysts have pointed out that this recent development will guarantee Nexperia China's uninterrupted production of Insulated Gate Bipolar Transistor (IGBT) power chips and modules. These components are crucial for managing current flow in electric vehicles and industrial machinery. Although government-level tensions between China and the Netherlands have shown signs of easing, legal disputes and internal power struggles concerning the control of Nexperia persist. Both Nexperia China and Wingtech Technology have cautioned that without a long-term resolution, disruptions in chip supply could recur. In its statement, Nexperia China revealed that Dintek Technology will provide it with 12-inch automotive-grade IGBT wafers, boasting a monthly production capacity of 30,000 wafers at its Shanghai facility. Furthermore, Nexperia China will also source 8-inch IGBT wafers from Shanghai GAT Semiconductor and SI Integrated.
