Will Nexperia move chip production to China?

The Chinese branch of semiconductor manufacturer Nexperia is close to moving a significant portion of its chip production to China, according to Asia Financial, citing internal sources. The relocation could be completed as early as the second half of 2026 and includes semiconductors widely used in the automotive industry. This shift is driven by the increasing fragmentation of global supply chains, with the Chinese division switching to domestic suppliers after restrictions on silicon wafers from European plants. A Nexperia representative stated that the transition from global to local production has essentially been completed, and all future products will be based on wafers made in China. According to Reuters, the locally produced chips are expected to meet the same quality standards as those from previous international supply chains. The reports of moving production to China are surprising, given interventions by the Dutch government and conflicts over technology control and transfer, which have even caused disruptions and uncertainty in automotive production. However, latest reports indicate that with the progress of production in China, Nexperia's local branch is now building a more independent supply chain