Nexperia, a Dutch chipmaker under Wingtech Technology, will invest $200 million to develop and manufacture semiconductors at its Hamburg plant in Germany.
Nexperia, one of the world's largest makers of basic semiconductors such as diodes and transistors, said in a statement that it intends to build two "wide bandgap" chips for electrical infrastructure, silicon carbide (SiC) and gallium nitride (GaN), at the plant over the next two years. These chips are favored over regular silicon chips because of their high efficiency, speed, light weight and ability to operate under high temperature and high voltage conditions.
“Electric mobility, green energy and digitalization are unthinkable without our products,” Nexperia Chief Financial Officer Stefan Tilger said in a statement announcing the investment. “They are fundamental elements that make new technologies possible.”
Nexperia produces 100 billion of these chips a year, nearly a quarter of the world's supply, with assembly and packaging taking place in China, Malaysia and the Philippines.
Nexperia competes with Texas Instruments, Infineon Technologies and NXP Semiconductors in the automotive market, with about 10% of its sales going to Chinese customers.
“We have a very ambitious growth curve and it’s a steep growth curve,” said Hannes van Raemdonck, Nexperia’s head of evangelism, adding that the company is investing to benefit from trends such as electrification and the increasing number of semiconductors used in cars. “Everything needs more chips to power the devices, (and) power semiconductors are our core business,” he said.
Meanwhile, the EU is eyeing simpler "legacy" chips made in China that are used in cars, power systems, smartphones and industrial applications. All of Nexperia's manufacturing and intellectual property is in Europe.
In 2018, Wingtech Technology acquired Nexperia for US$3.6 billion.
Hannes van Raemdonck said Nexperia competes with Chinese companies and he appreciated European policies aimed at ensuring its companies remain competitive. However, he was sceptical about concerns that Chinese companies would invest in excess capacity, “assuming that most of China’s capacity expansion is to meet domestic demand”.
Meanwhile in the UK: