Abstract:
The Dutch semiconductor company Nexperia and Tata Electronics, a subsidiary of the Indian Tata Group, announced a strategic cooperation on September 17. The two parties will carry out chip manufacturing, packaging and testing business in India, and further cooperate to develop future semiconductor technologies. This cooperation also means that Nexperia is further reducing its business dependence on the Chinese parent company Wingtech system and promoting the development of its supply chain in a more diversified direction.
According to the arrangement announced by both parties, Nexperia and Tata Electronics will cooperate to produce a series of power control chips under Nexperia. Related products are planned to be produced at Tata's 300mm wafer fab in Dholera, Gujarat. The factory is currently under construction with a total investment of approximately US$11 billion. It is Tata's core project in India's semiconductor manufacturing layout.
In addition to wafer manufacturing, the two parties will also carry out chip packaging and testing business in Jagiroad, Assam, northeastern India. Tata is building a local semiconductor packaging and testing facility, and Nexperia's discrete semiconductor products will enter the factory for assembly and testing in the future.
Nexperia stated that this cooperation covers multiple links in the semiconductor industry chain, including front-end wafer manufacturing, back-end packaging and testing, and technology and ecosystem construction. The two parties hope to establish a more flexible manufacturing system and improve the resilience of the supply chain through cooperation, while providing new production channels for Nexperia to expand its production capacity in the future.
The specific financial terms of this cooperation have not been announced, and both parties also plan to jointly promote future technology development.
Tata Electronics CEO and Managing Director Randhir Thakur said that the cooperation with Nexperia covers the complete semiconductor manufacturing value chain and is an important step for Tata in building a globally competitive and more complete semiconductor manufacturing ecosystem in India. Both parties also hope to use this to promote technological cooperation, supply chain construction and long-term industrial development.
Nexperia is a semiconductor company headquartered in the Netherlands, which mainly produces a large number of basic semiconductor devices used in automobiles, industrial equipment, consumer electronics and mobile devices. Unlike Nvidia, AMD and other companies that mainly produce high-performance computing chips, Nexperia's products are more basic semiconductors such as power control and discrete devices. However, these chips are widely used in various electronic equipment, so the stability of its supply chain is also of great significance.
The background of Nexperia’s cooperation with Tata is closely related to the control dispute between Nexperia and its Chinese parent company Wingtech over the past year or so. In September 2025, the Dutch government intervened in Nexperia's affairs and stated that the relevant measures were aimed at preventing the company's business and operations from being transferred to China. Since then, the relationship between Nexperia and Wingtech has deteriorated rapidly.
Wingtech is a Chinese listed company and the controlling shareholder of Nexperia, but it is currently unable to actually control Nexperia. A Dutch court has previously stripped Wingtech of its control over Nexperia, which is currently run by current management.
After the Dutch took measures, the Chinese government subsequently temporarily restricted the export of some Nexperia chip products. These products are mainly packaged at Nexperia's factory in Dongguan, China. Relevant export restrictions once caused automakers to face chip supply shortages.
With the subsequent adjustment of relevant measures by China and the Netherlands, the supply chain crisis has eased, but Nexperia’s internal business system and control relationships still show obvious geographical differentiation. This change is further reflected by Nexperia's management directly establishing a long-term partnership covering manufacturing, packaging and technology cooperation with India's Tata Group.
For Tata, cooperation with Nexperia can introduce more international customers and mature products to the under-construction Indian semiconductor industry, while helping it establish a complete industrial chain from wafer manufacturing to packaging and testing.
Tata is currently advancing two large-scale semiconductor projects in India. In addition to investing approximately US$11 billion in the Dholera wafer fab, the company is also building semiconductor packaging and testing facilities in Jagiroad, Assam, with a total investment of approximately US$14 billion in the two projects. The Dholera factory uses a 300mm wafer production line and plans to cover mature process ranges from 28nm to 110nm, and will first promote processes such as 90nm, 55nm and 28nm.
Tata is also continuing to expand its cooperation network in the Indian semiconductor industry. In addition to Nexperia, the company has recently reached cooperation with Dutch semiconductor packaging equipment company Besi, Japan's Fujifilm and other companies, as well as the Indian government's semiconductor laboratory and other institutions, involving wafer manufacturing, advanced packaging, semiconductor materials, equipment, chip design and talent training and other aspects.
The cooperation between Nexperia and Tata is therefore not just a separate chip production agreement, but part of India's ongoing effort to build a local semiconductor industry chain. As the demand for basic semiconductors continues to grow in the global automotive, industrial, consumer electronics, energy and communications industries, establishing production and packaging capabilities dispersed in different regions has also become an important direction for semiconductor companies to reduce supply chain risks.
For Nexperia, this cooperation also means that it can add a new production and packaging base in India to its existing manufacturing system in Europe and Asia. For Tata, it can use Nexperia's products, technology and global market channels to accelerate the construction of its Indian semiconductor manufacturing ecosystem.
The two parties have not yet announced when specific products will begin mass production in India, but they have begun preparations for the production of Nexperia MOSFET products at the Dholera factory and the packaging and testing of discrete semiconductor products at Jagiroad. As these facilities come into operation, India's participation in the global semiconductor supply chain will further expand.
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