India Benefits Amid Heated Dutch-Chinese Chip Dispute

Dutch chip manufacturer Nexperia is strengthening its cooperation with India amidst a dispute with its Chinese parent company, Wingtech. Nexperia and Tata Electronics have agreed to collaborate on the production and packaging of chips in India.

The two companies will produce various Nexperia power management chips at Tata’s US$11 billion factory currently under construction in Dholera. They will also collaborate on chip testing and assembly at Tata’s facility in Jagiroad.

The companies have not disclosed the financial value of the partnership. They also intend to collaborate on the development of semiconductor technology for the future.

“This comprehensive cooperation is a significant step in Tata Electronics’ efforts to build an integrated and globally competitive semiconductor manufacturing ecosystem in India,” said Tata Electronics CEO Randerm Thakur in a statement, as reported by Reuters.

Nexperia is a manufacturer of discrete chips widely used in the automotive and consumer electronics industries.

The company’s dispute with Wingtech began after the Dutch government intervened in September 2025 to prevent Nexperia from moving its operations to China. China subsequently retaliated by temporarily banning the export of Nexperia chips packaged in Dongguan. This policy triggered a chip shortage for automobile manufacturers.

While the situation has eased after the Dutch and Chinese governments rescinded their respective measures, Nexperia remains structurally divided. A Dutch court has stripped Wingtech of its control over the company, while the new partnership with Tata has received the support of Nexperia’s current management.