Nexperia China Diversifies Supply Chain Amidst Dutch Legal Dispute
Shanghai, Sunday, 28 December 2025.
Nexperia China is validating domestic wafer suppliers by early 2026 to mitigate legal risks. Notably, the unit successfully produced 11 billion chips since October despite severe supply constraints.
Strategic Supply Chain Realignment
The catalyst for this operational shift is a legal dispute with a Dutch chip manufacturer, which intensified as of December 27, 2025 [1][2]. In response to these legal headwinds, Nexperia’s China unit has prioritized the validation of alternative domestic wafer suppliers. The company has established a clear timeline for this diversification, aiming to complete the validation process for these new partners within the first half of 2026 [1][2]. This proactive measure is designed to decouple the firm’s production capabilities from the disputed supply lines and ensure business continuity.
Operational Resilience Amidst Constraints
Despite the ongoing search for alternative inputs and existing wafer supply constraints, the manufacturer has maintained significant output levels. Wingtech, the parent company of Nexperia, reported that the China unit successfully produced over 11 billion chips between mid-October 2025 and late December [2]. This high volume of production suggests that while the legal dispute poses a strategic threat requiring long-term supply chain adjustments, the company’s immediate manufacturing capacity remains robust.