Nexperia China Claims 12-Inch Wafer Production Milestone Amid Parent Split

Nexperia's Chinese subsidiary has announced that it has achieved small-batch production of chips using 12-inch silicon wafers, a development that deepens the split between the unit and its Dutch parent company, which does not manufacture wafers at that diameter.

In a statement posted to its Chinese social media account, Nexperia China said it had reached a new milestone in its "independent R&D and mass production capabilities," per Reuters, producing bipolar discrete devices, Schottky rectifiers, and electrostatic discharge protection devices. All of these are commodity power semiconductors that the Dutch company also manufactures.

Supply Chain Independence Takes Shape

The announcement represents a significant step toward supply chain independence for Nexperia China. The most likely supplier of the 12-inch wafers is WingSkySemi, a 12-inch wafer fab in Shanghai operated by Wingtech founder Zhang Xuezheng. Back in December, Reuters reported on a letter sent to Nexperia China's distributors, which named WingSkySemi as the planned source of automotive-grade wafers, with a stated monthly capacity of 30,000 wafers, alongside 8-inch IGBT wafer supply from Shanghai GAT Semiconductor and United Nova Technology Co., a fab linked to SMIC.

This development comes amid an escalating corporate governance dispute that began in late 2025 when the Dutch government took control of Nexperia from Wingtech, citing governance concerns, and subsequently installed a European management team.

Technical Implications of 12-Inch Wafer Production

The chips that Nexperia China claims it can now produce are simpler than IGBTs (insulated-gate bipolar transistors) used for current regulation in applications like EVs and industrial equipment. However, the ability to produce on 12-inch wafers represents a significant technical achievement. Larger wafer sizes allow for more chips per wafer, improving manufacturing efficiency and reducing per-unit costs.

12-inch wafer production has become the industry standard for high-volume manufacturing, with major foundries like TSMC, Samsung, and Intel having transitioned to this size years ago. For Nexperia China to achieve this capability demonstrates substantial progress in building indigenous semiconductor manufacturing expertise.

Corporate Battle Intensifies

The corporate split has manifested in several ways:

• In October, the Dutch side halted wafer shipments to Nexperia's Chinese factories, citing nonpayment
• A Dutch court ordered Wingtech's founder removed as Nexperia CEO
• Beijing responded by restricting exports of Nexperia's finished chips
• Honda temporarily suspended production at factories in China and Japan due to chip shortages
• Both governments partially relaxed their measures in November

Nexperia China has said it delivered more than 11 billion chips to over 800 customers since mid-October despite the disruption.

Strategic Implications for Global Semiconductor Supply

This development highlights the growing trend of semiconductor companies building regional supply chains to mitigate geopolitical risks. By establishing 12-inch wafer production capabilities, Nexperia China is creating a more self-sufficient manufacturing ecosystem that could operate independently of its European operations.

The ability to produce on 12-inch wafers also positions Nexperia China to potentially serve the automotive and industrial markets more effectively, where power semiconductors are critical components. The company's claim of producing bipolar discrete devices, Schottky rectifiers, and ESD protection devices covers key segments of the power semiconductor market.

What's Next for Nexperia

A Dutch court hearing on control of the company was scheduled for January 14, but it's not yet clear what followed that hearing, and no resolution to the corporate governance dispute has been publicly announced.

The split between Nexperia's Chinese and Dutch operations reflects broader tensions in the global semiconductor industry, where companies are increasingly caught between competing geopolitical interests. For Nexperia, the question now is whether it can maintain two separate supply chains or if the corporate governance dispute will force a complete separation of its Chinese and European operations.

Nexperia China's achievement in 12-inch wafer production represents more than just a technical milestone—it's a strategic move toward supply chain independence that could reshape the company's future operations and market positioning.