Signal Semiconductor Supply Chain Fragmentation: TSMC, Nexperia Split, Tungsten Bottleneck

Summary

On September 30, 2025, the Dutch Ministry of Economic Affairs invoked the 1952 Goods Availability Act to seize temporary control of Chinese-owned chipmaker Nexperia, barring it from relocating assets without government approval for one year over governance and national-security concerns; China's Ministry of Commerce retaliated with export restrictions, causing component price surges and prompting automakers to prepare for possible production halts. The rift deepened on October 26, 2025 when Nexperia's Dutch headquarters cut a supply interruption over an alleged payment-terms breach by local management, effectively splitting the company into Dutch-controlled and Chinese-controlled operations; Nexperia's Dongguan, China site, which historically produced roughly 70% of total output (over 110 billion devices annually pre-dispute), has since run about 14% below pre-dispute levels. Nexperia China says it has secured sufficient 2026 silicon wafer supply from domestic sources, including 12-inch automotive-grade IGBT wafers from Wingsky Semi and 8-inch wafers from Shanghai GAT Semiconductor and United Nova Technology (an SMIC-associated fab), with qualification expected between Q1 and Q2 2026, while Wingtech claims the Dutch unit is separately pursuing a shift of up to 90% of production outside China by mid-2026, including a $300 million Malaysia expansion. Honda halted output at its Mexico plant on October 28, 2025, adjusted US and Canada production, and scheduled Japan plant stoppages for January 5-6, 2026, expecting the shortage to cut fiscal-year operating profit by about $960 million. As of late December 2025, Chinese officials accused the Netherlands of improper interference damaging the global semiconductor supply chain, with the dispute unresolved into 2026; no tungsten-specific bottleneck detail could be corroborated in the research.