Nexperia Trade Restrictions Update: May 21, 2026

Current Situation and Key Developments

• The ongoing internal differences between Nexperia and ATGD, its Chinese packaging facility, continues, with little progress beyond the continuing investigations.
• Nexperia is expanding its packaging capacity in Malaysia and the Philippines to offset lost volume.
• Wingtech, Nexperia’s parent company, is expanding ATGD’s capabilities and building out a more localized Chinese supply chain.
• Most end users of Nexperia products have already adjusted their supply chains to work with competing vendors.
• Spot shortages for Nexperia discretes are elevated compared to pre-split levels but still manageable.

Recent Nexperia News

Resolution of the internal split between Nexperia’s Dutch headquarters and ATGD, the company’s packaging facility in Guangdong, China, remains distant. Nexperia and Wingtech, its parent company, met in court in February for the initial proceedings of Wingtech’s lawsuit against its subsidiary. Since then, little progress has been made beyond continued investigations into the respective complaints filed by each party.

Nexperia’s packaging capacity is being expanded in Malaysia and the Philippines to offset some of the volume lost from the disruption in China. However, this mitigation effort still leaves overall production realization well below normal levels. The resulting loss of revenue is increasingly weighing on Wingtech, which has reported a significant fiscal loss tied to the interruption of revenue from Nexperia.

In parallel, Wingtech is working to expand ATGD’s capabilities. Earlier this year, it enabled an agreement between ATGD and Wingsky Semi, another Wingtech subsidiary, to supply materials sufficient for approximately one year of IGBT production. Wingtech is now engaging additional Chinese wafer partners to support discrete-device manufacturing and build out a more localized supply chain. Through this strategy, the company aims to stabilize operations, withstand the current disruption, and reduce the risk of delisting from the Shanghai Stock Exchange.

End Results

Most end users exposed to Nexperia’s strife have realigned their supply chains and begun working with competing vendors. As a result, the rate of spot shortages for Nexperia discretes is manageable, though it remains slightly above the level from before the split.

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