Nexperia Trade Restrictions Update: December 23, 2025

Recent Nexperia News

Reuters recently reported that ATGD, Nexperia’s Chinese unit, has sent customers notices that it has secured wafers for its entire 2026 production forecast of IGBT power chips and modules. The wafers will be sourced from local sources and Wingsky Semi, another subsidiary of Wingtech Holdings (the parent company of Nexperia, which is on the US Entity List).

Nexperia said it hasn’t had any communication with ATGD and that the two companies are no closer to a resolution now than they were two months ago.

End Results

While ATGD’s supply of wafers has been secured, there has been no report about Nexperia’s supply. While the company has said it will warranty products using parts with date codes of China COO 2542 or older, its inventory of wafers with acceptable date codes is dropping, raising concerns about its ability to fulfill future orders.

ATGD products are likely to be accepted by Chinese customers after testing and verification, which will take between two and six weeks. It will be up to individual companies in the Americas, EMEA, and APAC to decide whether or not they will accept ATGD goods not supported by Nexperia.

While the US has suspended the change to its trade policy that led to this Nexperia situation, it could reinstate the change given these new circumstances. This would lessen ATGD’s access to US-friendly customers by:

1. Denying Wingsky and its subsidiaries crucial raw materials from outside of China.
2. Refusing to allow most customers from outside of China to purchase goods made by ATGD.
3. Denying access to design software and semiconductor-manufacturing equipment made outside of China, hindering long-term development of new products and packaging methods if the policy continues throughout 2026 and into 2027.

With the Nexperia issue likely to stay unresolved going into 2026, expectations are that the situation will only grow worse in January. The response from the US government to ATGD’s notice will likely determine the immediate future of this everchanging issue.

We will continue to monitor the situation and share the latest updates as they become available.