Dec 19 (Reuters) – The Chinese unit of Netherlands-based Nexeria has locked in supplies of silicon wafers from local firms to cover its entire 2026 production for one type of power chip, documents showed, after the Dutch firm stopped supplying the raw material in a corporate dispute.
The development will allow the Chinese unit, which announced independence from Nexeria’s European management two months ago, to continue making insulated-gate bipolar transistor (IGBT) power chips and modules, switches that regulate electrical current in electric vehicles and industrial equipment.
The controversy began when the Dutch government took control of Nexeria from its Chinese parent Wingtech in September, citing governance issues. In late October, it suspended supply of wafers to the Chinese unit, while a Dutch court ordered the removal of Wingtech’s founder as Nexeria CEO.
Beijing responded by halting exports of Nexeria’s finished products, triggering chip shortages for automakers worldwide.
Both governments relaxed their measures last month, but court battles and an internal battle over control of Nexeria continue, with both China and Wingtech warning that disruptions could resume without a long-term solution.
In a letter sent to its distributors earlier this month and seen by Reuters, Nexeria’s China unit said it had locked in wafer production capacity for IGBT products with local suppliers for 2026 and was speeding up certification of wafers from Wingtech’s foundry Wingsky Semi to ensure “abundant supply”.
The previously unreported move marks a further supply-chain split between Nexaria China and its Dutch parent that could lead to a full split.
Nexeria told Reuters it was not in communication with its Chinese subsidiary and that the unit “has no intention of negotiating a short-term solution to restore the flow of chips to customers.”
The company said IGBT products accounted for about 0.1% of Nexeria’s total revenue in 2024.
Nexeria China did not immediately respond to a request for comment.
Beijing last week asked the Dutch government to implement an agreement to encourage talks between Nexeria and Wingtech and to send the chipmaker a representative to China as soon as possible for talks.
Wafer inventory is running low
Nexeria China has told local distributors at its factory in Dongguan, south China’s Guangdong province, that wafer inventories are low because supplies from the Netherlands are not expected to resume soon, a person familiar with the matter said.
