Nexperia China seeks new wafer suppliers amid legal standoff with Dutch parent, could take 6 months for qualification — chip shortages have suspended some automotive production lines as Nexperia faces wafer shortage

Nexperia’s China unit is moving to line up new wafer suppliers over the next six to nine months as a deepening legal and operational dispute with its Dutch parent company disrupts supplies to one of the world’s largest producers of automotive and industrial chips, according to a South China Morning Post report. The spat has led to production delays and stoppages at several major automakers, with further plant shutdowns already slated for 2026.

At a shareholder meeting in Shanghai on Friday, December 26, Wingtech Technology, the Chinese owner of Nexperia China, said the Dongguan manufacturing base in Guangdong province continues to operate despite what it described as a "significant gap in wafer supply." The shortfall follows a decision by Nexperia’s Netherlands head office in Nijmegen to suspend wafer shipments to the Chinese plant on October 29, after Nexperia China refused payment for delivered wafers. Wingtech said the Dutch side had also restricted internal fund transfers.

In response, Nexperia China has begun validating domestic wafer suppliers, a process Wingtech expects to complete between the first and second quarters of 2026. While Wingtech did not name suppliers at the meeting, other reports indicate that Chinese fabs are being qualified to produce 8-inch (Shanghai GAT Semiconductor and United Nova Technology Co.) and 12-inch (Wingsky Semi) power semiconductor wafers used in IGBT devices for automotive and industrial applications.

Despite the disruption, Wingtech told shareholders that Nexperia China has produced and delivered more than 11 billion chips since mid-October to over 800 customers worldwide. That output reflects a 14% drop relative to Nexperia’s pre-dispute annual production of more than 110 billion devices. The Dongguan site historically accounted for roughly 70% of Nexperia’s total output, underscoring its importance to the company’s global supply chain.

Disruption has already translated into temporary production stoppages at downstream automakers, with further shutdowns scheduled into early 2026. On October 28, Honda halted output at its Mexico assembly plant and adjusted production at facilities in the U.S. and Canada after shortages of the Nexperia-supplied components. The company has since announced additional stoppages at several Japanese plants scheduled for January 5 and 6, with reduced operations until January 9.

All of this is unfolding alongside a broader legal battle over control of Nexperia. On September 30, the Netherlands’ Ministry of Economic Affairs invoked the 1952 Goods Availability Act to seize temporary control of the Dutch chipmaker, citing national security concerns. The move barred Nexperia from relocating assets without government approval for one year. Days later, China’s Ministry of Commerce issued export control measures that restricted Nexperia China and its subcontractors from exporting specific finished components and subassemblies.

Following an emergency hearing on October 7, the Dutch Enterprise Chamber removed Nexperia CEO Zhang Xuezheng, the founder of Wingtech, and placed all Wingtech-held voting rights under the supervision of an independent administrator. Nexperia subsequently appointed CFO Stefan Tilger as interim CEO.

Wingtech has said a court hearing on the dispute will be held in the Netherlands in January. A company representative told state-backed Shanghai Securities News that the Dutch government’s intervention may violate a 2001 bilateral investment protection agreement, adding that Wingtech could pursue international arbitration with claims of up to $8 billion if the issue is not resolved within six months.

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