Indian carmakers on alert after Nexperia takeover

Nijmegen, Netherlands-based Nexperia, owned by China's Wingtech Technology, has been thrust into crisis after the Dutch government moved to take control of its operations in September, citing national security concerns.

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The company, which manufactures semiconductor chips used in vehicle electronic systems, sends partially finished products to China for final processing before exporting them to customers in Europe.

Notably, the bulk of Nexperia's back-end assembly and testing of chips happens in China. However, their exports have now been halted by Beijing in retaliation against the Dutch move. According to Nexperia's own disclosures, it holds about 10% of global market share and up to 40% in some of the product areas such as transistors and diodes used in cars.

Nexperia makes what are typically known as building-block chips used in several systems of a vehicle, including engine control units, ADAS (Advanced Driver Assistance Systems), lighting systems, and infotainment systems, among others.