The Dutch semiconductor manufacturer Nexperia has forged a strategic partnership with India’s Tata Electronics, marking a decisive pivot following a geopolitical fallout with its Chinese parent company, Wingtech.
This collaboration spans wafer fabrication, technology development, and back-end assembly. Nexperia will manufacture its MOSFET power control chips at Tata’s upcoming 300mm fabrication plant in Dholera, Gujarat, while conducting packaging and testing at Tata’s facility in Jagiroad, Assam.
This shift solidifies Nexperia’s fracture from Wingtech, triggered when the Dutch government intervened on national security grounds to block the transfer of its operations and intellectual property to China, highlighting Europe’s increasing vigilance regarding technological sovereignty and the risks of Chinese control over critical supply chains.
A Dutch court subsequently stripped Wingtech of its control. Beijing had previously retaliated against the intervention with export bans on Nexperia chips packaged in China, causing component shortages for carmakers before the bans were eventually eased.
Nexperia’s realignment aligns with global efforts to build resilient, geographically diversified supply chains. For Tata Electronics, which is investing $14 billion to establish India’s first commercial semiconductor ecosystem, the deal accelerates its manufacturing capabilities and strengthens India-EU tech relations.
This landmark partnership offers a major boost to the newly launched India Semiconductor Mission (ISM) 2.0. Building upon the success of ISM 1.0, which successfully attracted 12 major chip manufacturing and assembly projects to the country, ISM 2.0 expands the government’s outlay to Rs 1.27 lakh crore ($13.5 billion). While the first phase established initial fabrication capabilities, ISM 2.0 focuses on localising the broader supply chain ecosystem, including ancillary industries like semiconductor equipment, specialised chemicals, and ultra-high-purity gases, perfectly aligning with Tata’s Dholera facility.
Meanwhile, the high-profile loss of a major European chipmaker to an emerging Indian rival has sparked outrage across Chinese social media, highlighting domestic frustration over tightening Western tech containment and India’s rapidly rising competitiveness in the global semiconductor market.
We need to do more ! This is a very serious step towards what we want to achieve, however, with that we also need to remember, we are still at a very huge risk at weaponisation of Tech supply chains, this is welcomed, however it shouldn’t be exaggerated
Right. This is just a small step. The Semicon Program and more such programs need to be run and fostered by the government to bring us to the global level.
Running at current pace probably by 2035 we can see the rise of India in the sector.