Nexperia China in Netherlands Seeks New Wafer Suppliers Amid Dispute with Dutch Parent

Nexperia owner Wingtech says the China unit produced more than 11 billion chips since mid-October, despite wafer supply constraints

Nexperia China, the mainland unit of the Dutch chipmaker owned by Wingtech Technology, is moving to secure new wafer suppliers within the next six months as a legal and operational dispute with its Netherlands head office continues. After Nexperia’s headquarters in Nijmegen halted wafer supplies to the Dongguan plant on October 29 over unpaid dues and restricted fund disbursements, the China unit began validating domestic wafer suppliers, a process expected to conclude between the first and second quarters of 2026.

Despite significant wafer supply constraints, Wingtech said the Dongguan facility has continued operations, producing and delivering over 11 billion chips since mid-October to more than 800 global customers. Production, however, has fallen about 14% compared with Nexperia’s pre-dispute annual global output of over 110 billion chips, with the Dongguan plant previously accounting for around 70% of total production.

Nexperia China, the estranged unit of the Dutch chipmaker, is pushing forward with efforts to secure new wafer suppliers in six months, as the firm’s Netherlands head office and mainland Chinese owner Wingtech Technology started direct talks last week.

In its shareholders meeting in Shanghai on Friday, Wingtech said Nexperia China’s plant in Dongguan, in southern Guangdong province, continued to operate amid “a significant gap in wafer supply”, reports from several state-backed media said.

Nexperia’s head office in Nijmegen had suspended further supply of wafers to the Dongguan facility on October 29, following Nexperia China’s refusal of payments for these wafers. According to Wingtech, the Dutch head office “had restricted fund disbursements to Nexperia China”.

That prompted Nexperia China to start the process of validating domestic wafer suppliers, which “is expected to be completed between the first and second quarters of 2026”, the reports said.

Despite the current wafer shortage, Wingtech claimed that Nexperia China managed to produce and deliver more than 11 billion chips since mid-October to more than 800 clients globally.

That represented a 14 per cent drop in production, compared with Nexperia’s annual global output, which exceeded 110 billion units before the dispute with the Dutch head office. The Dongguan facility accounted for 70 per cent of the chipmaker’s total output.