Dutch chipmaker Nexperia announced a far-reaching partnership with Tata Electronics on Thursday to manufacture and package computer chips in India, further sealing its split with Chinese parent Wingtech.
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Under the deal, Nexperia and Tata will manufacture a swathe of Nexperia’s power control chips at the $11 billion plant Tata is constructing in Dholera. The companies will also cooperate on testing and assembling chips at Tata’s packaging facility in Jagiroad, they said.
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“This comprehensive partnership … represents an important step in Tata Electronics’ efforts to build a globally competitive, integrated semiconductor manufacturing ecosystem in India,” Tata Electronics CEO Randhir Thakur said in a statement.
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Nexperia is an important maker of simple chips that are widely used in the automotive and consumer electronics industries. Its ongoing dispute with Wingtech was triggered by a September 2025 intervention by the Dutch state, which it said was aimed at preventing the company from moving operations to China.
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[In 2025], a Dutch court has stripped Wingtech of control over national security concerns, and Thursday’s partnership with Tata was endorsed by Nexperia’s current management board.
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China reportedly wanted to shut down production in Europe and relocate it to China.
It’s a complicated story of back and forths, but in hindsight it turned out a hostile takeover instead of a symbiotic relation like a joint venture has, with a win for both sides. European and Chinese markets grew more intertwined the last decades, but their political leaders became adversaries at the same time. International relations changing probably caused how this specific company chose to behave. Just like the US does not like ASML doing business in China, they didn’t like Nexperia doing business there, which also caused increased pressure to the new parent company. At some point the US even put Nexperia on their blacklist because of the Chinese ownership. Not to point all fingers at the US, but I don’t think it had to end up the way it did. Still, the new parent would have sucked Nexperia dry and I understand why this intervention was necessary. Europe is already over-dependent on China in many ways.