Nexperia builds new production chain in India

With the partnership, Nexperia aims to further diversify its production chain and reduce its dependence on manufacturing in China. The company has been involved in a long-running conflict with its Chinese parent company, Wingtech Technology.

Stefan Tilger, interim CEO of Nexperia, describes the partnership as a way to build a “resilient and globally balanced manufacturing network.” For Nexperia, India therefore offers not only additional production capacity, but also access to a growing semiconductor ecosystem.

Less dependent on China

Nexperia has been involved in a long-running conflict with its Chinese parent company, Wingtech Technology. Last year, the Dutch government intervened at Nexperia to limit Wingtech’s influence. China responded by imposing restrictions on the export of Nexperia products from Chinese factories.

Since then, Nexperia has been looking for ways to further diversify its production and supply chain geographically. In addition to China, the company has production facilities in countries including Malaysia. India is now becoming a new link in that network.

Partnership

The partnership consists of three areas: wafer production, assembly and testing, and cooperation in technology development and the development of the semiconductor ecosystem.

In Dholera, in the Indian state of Gujarat, Tata Electronics is building a new 300-millimeter semiconductor fab. Nexperia and Tata are laying the groundwork for the production of Nexperia’s MOSFET portfolio there. In addition, the companies will collaborate on the assembly and testing of Nexperia’s discrete semiconductor products at Tata’s facility in Jagiroad, Assam. The partnership therefore covers multiple stages of the semiconductor value chain.

For Nexperia, the partnership primarily provides a new production route outside China. The company aims to further diversify its global manufacturing network and strengthen the resilience of its supply chain.