April 8, 2026 /SemiMedia/ — Nexperia’s China unit is moving to fully local wafer sourcing, as the company reshapes its semiconductor supply chain following disruptions to its European supply, according to people familiar with the matter.

The company has informed distributors that wafers from its Dutch operations will no longer be used for China production. Instead, it plans to rely on domestic suppliers, with the goal of completing the full chip manufacturing flow within China.

The shift comes after restrictions introduced last October affected the flow of wafers from Europe. These wafers, which carry the base circuit structures, are a key input for chip packaging and final device production.

A source said the transition from a global supply model to a China-based setup is largely complete. Nexperia said chips produced locally will follow the same quality standards as before, including those used in automotive applications.

The company expects that by the second half of 2026, most of its products in China will be sourced and produced domestically.

At present, its packaging plant in Dongguan is running at about 60% to 70% of capacity, supported by inventory, customer-supplied wafers and local alternatives. Output for key products could recover to around 90% in the second quarter, the source said.

Production is now centered on packaging operations in Dongguan and wafer supply linked to Shanghai, with additional support from external manufacturing partners. The company plans to focus on these sites as its main production base going forward, reducing reliance on overseas resources.