[News] NXP Reportedly Eyes Local Foundry Partner to Boost Full Chipmaking in China

Amid rising U.S. export controls and looming tariff risks, Dutch chipmaker NXP is doubling down on its China localization strategy—“In China, For China, For the World.” According to Chinese outlet Jiemian, the company now plans to partner with a local foundry to manufacture its chips entirely within China.

Citing remarks from Xiang Zhou, Marketing Director at NXP Greater China, the report suggests that the company plans to work with a local Chinese foundry to move full chip production—front to back—into China. While NXP already runs a major packaging and testing plant in Tianjin, wafer fabrication has largely stayed in its U.S. and Singapore facilities, Jiemian reports.

It is worth noting that NXP is not the only semiconductor giant that aims for expansion in China recently by seeking local foundry partners. For instance, in November 2024, STMicroelectronics expanded its collaboration with Hua Hong, the second-largest foundry in China, to produce 40nm microcontroller chips in Shenzhen by the end of 2025, according to eeNews Europe.

China is still NXP’s biggest market by far. In 2024, it made up 36% of the company’s total sales—surpassing the Americas (14%), EMEA (22%), and the rest of Asia (28%), according to its financial report.

Notably, NXP officially launched its China Business Unit this January, according to Jiemian. The Dutch chipmaker has been operating in China since 1986, and it now has a strong local footprint—with 6,000 employees, including 1,600 engineers, across six R&D centers and 16 offices nationwide, the report adds.

To meet the growing demand in China’s automotive chip market, NXP also announced new partnerships with Chinese electric vehicle manufacturers Geely, Leapmotor, and Deepal during its 2025 Automotive Leadership Media Day on July 2, according to the report.

China for China Policy Accelerates Local Chipmaking Push

As TrendForce points out, the Chinese government has set a goal for domestic automakers to increase the use of locally produced chips to 25% by 2025 while also encouraging foreign companies to localize their production. In response, major automotive chip suppliers such as STMicroelectronics, Infineon, NXP, and Renesas have been exploring partnerships with Chinese foundries—including SMIC and HHGrace—aiming to accelerate diverse platform development.

TrendForce forecasts that IDM-manufactured products under the “China for China” strategy are expected to enter mass production in the second half of 2025, contributing to revenue growth. The impact of these collaborations is projected to expand further by 2026, solidifying the role of these partnerships in the evolving semiconductor landscape.

Read more

(Photo credit: NXP)