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Nexperia Dispute Threatens Auto Production Amid Global Chip ...
2025-10-23 16:55:09
Automotive
China
Business

Nexperia Dispute Threatens Auto Production Amid Global Chip Shortage

The automotive industry is grappling with a severe chip shortage exacerbated by geopolitical tensions. A recent dispute between the Dutch government and Nexperia, a major semiconductor supplier, has intensified supply chain challenges.

Nexperia's chips are vital for many automotive manufacturers, including industry giants like Tesla and Bosch. As production warnings emerge, German carmakers, including Volkswagen and BMW, face significant risks, including potential factory shutdowns.

Job losses in the German automotive sector are projected to reach 51,500 by 2025, underscoring the crisis's economic impact. Concurrently, the decline in China's rare-earth exports adds another layer of complexity.

Automakers are increasingly investing in domestic suppliers to mitigate risks, while the situation reflects broader tensions between China and Western nations over technology and trade. The evolving dynamics could reshape not only production capabilities but also the future landscape of the automotive industry.

Related news on that topic:

European Automakers Face Production Risks Amid Nexperia Supply ... Crisis

The automotive industry is currently grappling with a severe supply shortage, primarily due to issues surrounding the Dutch chip manufacturer Nexperia. The Association of the Automotive Industry (VDA) has raised alarms about potential production halts as companies like Volkswagen and Tesla face critical shortages of essential semiconductors. The Dutch government’s intervention has complicated matters, stripping Nexperia’s Chinese owner of control and raising concerns about technology transfer. As a result, European automakers are at risk of significant disruptions reminiscent of the pandemic-era chip crisis. Industry experts warn that without immediate solutions, production lines may come to a standstill, jeopardizing jobs and economic stability. Meanwhile, companies are scrambling to find alternative suppliers to mitigate the crisis, underscoring the urgent need for strategic responses to enhance semiconductor resilience within Europe.

Chip Shortages Threaten Major German Automakers Amid Supply Chain ... Crisis

The ongoing chip crisis poses a serious threat to the German automotive industry, as production stoppages loom for major players like Volkswagen and BMW. The root of the issue lies with the Dutch chip manufacturer Nexperia, which has faced significant export restrictions due to a government takeover and tensions with China. The Association of the Automotive Industry (VDA) has raised alarms, indicating that the fallout could resemble the disruptions experienced during the COVID-19 pandemic. In response, companies like ZF and Bosch have initiated task forces to explore alternative suppliers. Meanwhile, the Dutch government is in negotiations with China to resolve the trade dispute, aiming to restore the supply chain. As crisis talks unfold in Brussels, the stakes remain high, with thousands of jobs at risk should production halt in the near future. This situation underscores the fragility of global supply chains and the interconnectedness of international trade.

Read 2 more recent news on this topic

The press radar on this topic:

Gmx
22. Oktober 2025 um 14:35

Chip shortage in the automotive industry: The severity of the situation

This article discusses the current crisis in the automotive industry. A dispute between the Dutch government and the Chinese parent company of Nexperia, a key provider of discrete semiconductors, has led to supply problems. The trade conflict between the US and China is not directly involved, although the Netherlands claim it has nothing to do with the conflict over Nexperia. Nexperia chips are an essential component in many cars, including Tesla and suppliers like Bosch. The dispute could lead..
Deutsche Welle
23. Oktober 2025 um 07:09

Nexperia chip warning compounds European carmakers' supply woes

European carmakers face supply chain risks as Nexperia's production stop warning coincides with China's rare-earth export decline. Germany's automotive industry suffers job losses, with 51,500 positions vanished between 2024-2025. Automakers like Volkswagen and Mercedes invest in domestic battery suppliers, while Northvolt's bankruptcy serves as a cautionary tale. TSMC's Dresden factory aims to reduce reliance on Chinese chip supplies by 2027.
n-tv.de
23. Oktober 2025 um 10:52

China Demonstrates Its Power: Why Car Manufacturers Are Now Running Out of Chips - n-tv.de

This article discusses the current conflict between the Dutch government and the Chinese owner of Nexperia. After the Netherlands took control of the company, China halted the export of crucial semiconductors for the automotive industry. The reason for this is Wingtech, a Chinese corporation that is on a blacklist of the US government and could potentially transfer critical technology. However, expert Ferdinand Dudenhöffer believes that this is unlikely to be the main reason. Instead, he thinks..
The Guardian
23. Oktober 2025 um 16:52

Volvo and VW say Dutch takeover of Chinese chipmaker could halt car factories

Car companies across Europe and Japan, including Volvo, Honda, and Nissan, warn that the Dutch takeover of Nexperia, a Chinese-owned chip manufacturer, could halt production at factories due to potential chip shortages. The Netherlands' decision to take control of Nexperia has led to a ban on exports from China, exacerbating tensions between Beijing and Washington. Several companies, including Volkswagen and Volvo, express concerns about the impact on their car production, with some warning that..
CW

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