📊Executive Summary

Nexperia's China unit is actively seeking local suppliers for silicon wafers to stabilize production after supply disruptions caused by a corporate dispute. The company has halted wafer deliveries from its Netherlands operation, prompting a search for domestic alternatives. This strategic shift aims to secure sufficient wafer supplies for its 2026 output needs, particularly for one category of power chips. The situation is further complicated by geopolitical tensions, including export restrictions imposed by Beijing on Nexperia's finished products, which have contributed to chip shortages for automakers globally. The supplier selection process is expected to be completed in the first quarter of 2026, indicating a proactive approach to mitigate risks associated with international supply chains....