Global semiconductor manufacturer Nexperia has announced a $200 million investment to expand its production capabilities at its Hamburg, Germany facility.

The Dutch-headquartered company, owned by Chinese electronics firm WingTech, plans to develop next-generation wide bandgap semiconductors and increase wafer fab capacity for silicon diodes and transistors.

The investment, announced on the plant's 100th anniversary, will focus on silicon carbide (SiC) and gallium nitride (GaN) technologies. These advanced semiconductors are crucial for power-intensive applications such as data centres, renewable energy systems, and electric vehicles, supporting the drive towards decarbonisation.

Production lines for high-voltage GaN transistors and SiC diodes began operation in June 2024, with plans to establish 200 mm production lines for SiC MOSFETs and GaN HEMTs over the next two years. The expansion is expected to create jobs and enhance the European Union's semiconductor self-sufficiency.

Nexperia's move comes amidst increasing scrutiny of Chinese investments in European technology sectors. The company has faced challenges in recent years, including forced divestment of a UK factory and disqualification from German subsidies. Despite these hurdles, Nexperia remains committed to its European operations, emphasising its role in supplying critical components for emerging technologies.

The investment represents a significant boost for Europe's semiconductor industry, occurring without assistance from EU Chips Act subsidies. It underscores Nexperia's strategy to maintain its position as a leading supplier of energy-efficient semiconductors while addressing growing global energy demands.

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