Nexperia partners Tata Electronics for chip manufacturing at Dholera fab
Synopsis
Key Takeaways
Dutch chipmaker Nexperia has announced a strategic partnership with Tata Electronics to manufacture and package power control chips at Tata's planned semiconductor complex in Dholera, Gujarat, marking a significant pivot for the Netherlands-based company following its high-profile fallout with former Chinese parent Wingtech. The deal, announced on 18 September 2026, covers front-end wafer fabrication, back-end assembly and testing, and joint technology development.
What the Partnership Covers
Under the agreement, Nexperia and Tata Electronics will co-produce a range of Nexperia's power control chips — including its MOSFET portfolio — at the $11 billion Dholera plant, which will house a 300mm semiconductor fab. The two companies will also cooperate on chip testing and assembly at Tata's packaging facility in Jagiroad. Financial terms of the deal were not disclosed.
The partnership is structured around three pillars: front-end wafer fabrication; back-end assembly and test; and technology and ecosystem development. The companies said they will also collaborate on developing future technology, signalling a longer-term commitment beyond the immediate manufacturing mandate.
What the Companies Said
Tata Electronics Chief Executive Randhir Thakur described the collaboration as 'an important step in Tata Electronics' efforts to build a globally competitive, integrated semiconductor manufacturing ecosystem in India.' Stefan Tilger, interim CEO of Nexperia, said the framework 'creates new opportunities for collaboration and reinforces our commitment to serving customers through a resilient and globally balanced manufacturing network.'
Tilger added that the collaboration brings together 'complementary strengths across technology, manufacturing and innovation, while supporting the broader development of semiconductor capabilities in India.'
The Wingtech Fallout and Its Global Ripple
Nexperia — a major supplier of chips used widely in the automotive and consumer electronics industries — entered a protracted dispute with Wingtech in September 2025 after the Dutch government intervened to prevent the company from shifting operations to China. Beijing reportedly retaliated by temporarily banning exports of Wingtech's chips, which were packaged in Dongguan, triggering chip shortages for carmakers. The episode underscored the geopolitical fragility of semiconductor supply chains concentrated in a single geography.
This comes amid a broader global push to diversify chip manufacturing away from East Asia. The Nexperia-Tata deal is part of that recalibration, and aligns with India's stated ambition to become a credible node in the global semiconductor supply chain.
India's Semiconductor Push
The Dholera facility is one of India's most ambitious semiconductor projects under the government's India Semiconductor Mission. Tata Electronics had earlier announced the $11 billion fab investment, which is expected to become a cornerstone of India's chip ecosystem. Nexperia's participation adds a globally recognised chip designer to the Dholera project, potentially boosting its credibility with other prospective partners and customers.
As India seeks to establish itself as a manufacturing alternative to China and Taiwan, the Nexperia deal could serve as a template for similar technology-transfer arrangements with other European and US chipmakers looking to reduce single-country exposure.