Chip manufacturer Nexperia is able to restore better supply to its customers after months of limited deliveries. Speaking to the “Handelsblatt”, interim CEO Stefan Tilger stated that the company is now providing more capacity to its customers on a weekly basis, predicting that the largest bottlenecks should be resolved by the end of the year.
The Dutch group, which maintains its most significant operations in Hamburg, had endured conflict with its Chinese owner in the autumn. Since then, large quantities of Nexperia chips-essential for many industrial companies-have been missing. To compensate for the disruption in Chinese capacity, Nexperia is accelerating its expansion in Southeast Asia. A facility in Malaysia is scheduled to replace the Chinese factory as quickly as possible. According to Tilger, production at this Malaysian site will be doubled this year, and the company already has a complete building ready for machine installation there.
Nexperia is also utilizing partners to unlock additional capacity. Tilger explained that the company is building a supply chain where each product can be sourced from various locations. However, because the Chinese factory cannot be fully replaced for chip further processing yet, machines at the main plant in Hamburg are currently idle. Tilger noted that the Hamburg factory has excess capacity at the moment, but the situation is gradually improving. He anticipates that the location will be fully utilized again in a period of one and a half to two years at the latest.
Despite these turbulent circumstances, Tilger remains optimistic about Nexperia’s future outlook. While admitting that the company has certainly lost temporary market share, he affirmed that they have retained virtually no customers.
