Nexperia China starts 12-inch chip production for independence

Nexperia China said it has begun producing its own chips using 12-inch wafers in what it described as a further step towards independence from its Dutch parent amid a months-long dispute.

The dispute began in October 2025 after a Dutch government intervention and Nexperia Europe later halted wafer shipments to China, citing nonpayment.

The 12-inch wafers will be used to produce bipolar discrete and power devices.

Wingtech founder Zhang Xuezheng controls WingSkySemi, a 12-inch wafer fab in Shanghai that previously cooperated with Nexperia.

🔗 Source: Reuters

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Implications, context, and why it matters.

A corporate schism helps explain the pivot to 12-inch wafers

An internal fight widened into a governance and operations break after the Dutch Enterprise Chamber (a specialized Dutch court for corporate disputes) suspended then-CEO Zhang Xuezheng as a director on Oct. 7, 2025, so he no longer served as CEO 1.
The Enterprise Chamber said it had reasons to question sound management. Separate reporting raised conflict-of-interest concerns tied to large wafer orders linked to WingSkySemi, a Shanghai 12-inch wafer fabrication plant (fab) associated with Zhang 2.
After the Dutch government stepped in to prevent the loss of technological knowledge and capabilities, China’s Ministry of Commerce issued export controls that restrict exports of certain finished components and sub-assemblies made in China by Nexperia China and its subcontractors 1.
That break disrupted wafer supply from Europe for Nexperia China, which later said it had started producing several chips on 12-inch wafers. Reuters could not confirm the wafer source, while WingSkySemi emerged as a possible supplier due to past work with Nexperia 3.

How ‘boring’ chips become geopolitical choke points

The episode turns cheap, low-tech parts into geopolitical choke points. Nexperia produces basic power-control chips like transistors and diodes that cost a few cents, and automakers have warned of potential production disruptions 4.
Tension between Dutch and China-based operations has grown, with Nexperia telling customers it cannot guarantee its IP (intellectual property), technology, or authenticity and quality standards at the ATGD Dongguan facility for parts with week code 42 and after 3.
Automakers and suppliers have started re-checking exposure and qualifying substitutes. The situation has already fed into production pauses and plan changes, including Honda actions tied to semiconductor shortages 3.
Honda said chip shortages would cut operating profit by about US$960 million for the fiscal year ending March 2026, which underlines the risk of relying on single sources for basic components 3.