Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

NEWS

Chinese-owned chipmaker Nexperia invests $200 million in European expansion

Chinese-owned chipmaker Nexperia invests $200 million in European expansion

By Toby Sterling

AMSTERDAM/HAMBURG (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, Malaysia 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)

(This story has been corrected to say Malaysia, not Indonesia, in paragraph 5)

 

(Reporting by Toby Sterling; Editing by Emelia Sithole-Matarise)

 

Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!


By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts