Chipmaker Nexperia's China Unit Goes Local, Speeds Up Deliveries
Your car or phone could be built faster as chip delays shrink from months to weeks.
Deep Dive
Nexperia China CEO John Chang said at the 23rd China International Semiconductor Expo in Beijing on Thursday that the local division has completed localisation of the entire chain—from product definition and development to manufacturing—by partnering with domestic foundries and relying on its own facilities and local contractors for chip packaging and testing. The shift has slashed delivery times for some components to four to six weeks, down from 12 to 16 weeks previously, he said.
Key Points
- Nexperia's China unit now makes chips entirely with local partners, cutting delivery times by half.
- Faster chip deliveries could mean quicker availability of cars, phones, and other electronics.
- The rift with the Dutch parent company might lead to supply issues in other parts of the world.
Why It Matters
Shorter chip delivery times could mean faster access to cars and electronics, but global splits may raise prices elsewhere.