Dutch semiconductor manufacturer Nexperia is experiencing extreme demand pressure as chip suppliers reallocate production capacity toward rapidly expanding artificial intelligence data centres, according to a new report.
Speaking at the Electronica trade fair in Munich, Nexperia interim CEO Stefan Tilger revealed that the company is totally oversubscribed. He noted that competitors diverting resources away from legacy automotive and industrial microchips have created severe supply chain bottlenecks for vehicle manufacturers.
Echoing these concerns, STMicroelectronics Chief Executive Officer Jean-Marc Chery warned that external foundries alongside assembly and packaging firms are increasingly disengaging from mainstream technologies. As semiconductor manufacturers prioritise higher-margin products destined for AI computing and robotics, mature component production has faced underinvestment for several years. Consequently, essential low-cost components such as diodes and transistors are becoming scarce for traditional industrial users.
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The growing divergence in semiconductor production capacity comes at a time when the global automotive industry is already facing pressure. Specialised component makers like Nexperia, which focus primarily on high-volume, low-cost mature-node chips for vehicles, are struggling to satisfy market demand alone. The reallocation of foundry output toward high-performance computing continues to strain vehicle assembly operations worldwide.
To mitigate these external supply chain disruptions, some semiconductor manufacturers are leaning on internal production capabilities. Chery noted that STMicroelectronics maintains partial protection against market-wide packaging and foundry shortages through its proprietary manufacturing footprint and direct capital expenditure.
