Nexperia eyes new packaging partners amid China dispute

Nexperia is looking to shift part of its chip packaging operations away from China as a dispute with its Chinese unit escalates, according to a Reuters report. The move comes after an intervention from the Dutch government and the court, prompting Nexperia China to effectively declare itself independent from the European headquarters. Additionally, Beijing blocked exports from Nexperia’s Dongguan assembly facility, although domestic shipping has reportedly resumed.

Packaging has become a critical issue for the European arm of Nexperia, whose front-end facilities rely heavily on China for back-end processing. The ownership conflict and export restrictions have disrupted deliveries to major automotive and electronics customers worldwide. Dutch Economic Affairs Minister Vincent Karremans talked to his Chinese counterpart on Tuesday, but a quick diplomatic resolution seems unlikely.

A Nexperia Europe spokesperson told Reuters that efforts to seek packaging partners outside China predated the dispute and weren’t part of a move away from its Chinese factory.