AMSTERDAM/HAMBURG, June 27 (Reuters) - Nexperia, one of
the world's largest makers of basic semiconductors such as
diodes and transistors, said on Thursday it would invest $200
million to expand capacity at its main production site in
Hamburg, Germany.
The investment by Dutch-headquarted Nexperia, owned by
Chinese electronics maker WingTech, is a rare
example of a computer chip investment made in Europe without
assistance from state subsidies under the EU's Chips Act
launched in 2023.
It also comes as the European Union is considering whether
China is unfairly subsidising domestic Chinese production of
"legacy" chips, found in cars and household appliances, such as
those made in Europe by Nexperia.
Electric cars, "green energy and digitalization are
inconceivable without our products," CFO Stefan Tilger said in a
statement announcing the investment decision. "They are the nuts
and bolts that make new technologies possible."
Nexperia makes 100 billion such chips annually, nearly a
quarter of the world's supply, with production in Europe and
assembly and packaging in China, Indonesia and the Philippines.
However, since its $3.6 billion acquisition by WingTech in
2018, Nijmegen, Netherlands-based Nexperia has been subjected to
increasing scrutiny by European governments.
In 2022, the British government forced it to divest a
factory in Newport, citing security concerns.
In 2023 the German government disqualified it from receiving
a subsidy to develop a battery efficiency technology. And the
Dutch government approved its purchase of Nowi, a startup, after
retroactive vetting.
Nexperia plans to add lines in Hamburg making two types of
"wide bandgap" chips, which have important uses in electrical
infrastructure, using Silicon Carbide (SiC) and Gallium Nitride
(GaN).
These chips are favoured over regular silicon chips for
their efficiency, speed, light weight, and ability to function
under hot conditions and high voltages.
Nexperia was spun out of NXP, the former chipmaking
arm of Philips, in 2017.
($1 = 0.9352 euros)
(Reporting by Toby Sterling; Editing by Emelia
Sithole-Matarise)