Sat, Oct 18, 2025 page9

• Automakers warn on chip disruption

  CHINESE EXPORT CURBS: A dispute between China and the Netherlands could halt chip supply, affecting vehicle production, US and European auto associations said

  • Reuters, Bloomberg
  • • 
    • 
    • 

  Groups representing major automakers late on Thursday warned that a chip disruption stemming from a dispute between China and the Dutch government could quickly affect US auto production.

  Automakers and their suppliers received notice from chipmaker Nexperia (安世半導體) last week that it could no longer guarantee delivery of its chips, the European Automobile Manufacturers Association said, adding that manufacturing could be significantly disrupted.

  In the US, the Alliance for Automotive Innovation, which represents General Motors, Toyota, Ford, Volkswagen, Hyundai and nearly all other major automakers, urged a quick resolution.

  

  The logo of Chinese chipmaker Nexperia is pictured in Hamburg, Germany, on June 27 last year.

  Photo: Reuters

  “If the shipment of automotive chips doesn’t resume — quickly — it’s going to disrupt auto production in the US and many other countries, and have a spillover effect in other industries,” alliance CEO John Bozzella said. “It’s that significant.”

  Several automakers told Reuters that US auto plants could be affected as soon as next month. They declined to be named due to the sensitivity of the issue.

  The chips made by Nexperia are crucial to production of US parts and vehicles.

  The Dutch government on Sunday announced that it had, as of Sept. 30, taken control of Chinese-owned computer chipmaker Nexperia, citing worries about the possible transfer of technology to Nexperia’s Chinese parent company, Wingtech Technology Co (聞泰科技).

  Court documents showed the Dutch government’s move came after months of rising US pressure on the company. Nexperia was at risk of being impacted by a new US rule that extends export control restrictions to companies at least 50 percent owned by one or more entities on the US entity list.

  Washington put Wingtech, which has 100 percent ownership of Nexperia, on the US list in late December last year.

  The Chinese Ministry of Commerce on Oct. 4 issued an export control notice prohibiting Nexperia China and its subcontractors from exporting specific finished components and sub-assemblies manufactured in China, a statement Nexperia published on Tuesday said.

  Manufacturers in Europe are holding urgent meetings to fend off potential outages that could come within a month, people familiar with the matter said.

  The industry has upped inventories after the COVID-19 pandemic sparked previous chip shortages. However, automakers like Volkswagen AG and suppliers including Robert Bosch GmbH might take months to switch from Nexperia to alternative sources, the people said, who asked not to be named because the discussions are private.

  “If the situation is not resolved quickly at the political level, there is a risk of a standstill in large parts of global automotive production and in numerous other industrial sectors,” said Wolfgang Weber, who heads Germany’s electrical and digital industry association ZVEI.

  While Nexperia’s chips are not considered cutting edge, they are widespread and make up a key part of the automotive supply chain, with hundreds of them in a single car. Its semiconductors help operate functions like switches or steering wheel control.

  The automotive sector accounts for more than 60 percent of Nexperia’s revenue, which came in at US$2.06 billion last year.

  The export curbs are already prompting companies to look elsewhere.

  German chipmaker Infineon Technologies AG — one of the dominant suppliers to the auto industry — is fielding calls from Nexperia customers seeking alternative supplies, the people said.

  Automakers do not necessarily source chips directly, but often buy finished parts with semiconductors in them from larger suppliers such as Bosch and Aumovio, the car-parts business spun off by Continental.

  Those companies also get individual components from smaller suppliers, making it difficult to quickly assess the scope of potential supply-chain disruptions.
• Most Popular

  • 1

    Air quality to deteriorate nationwide from tomorrow

  • 2

    Taiwan conflict ‘catastrophic’ for China: US report

  • 3

    Taiwan closely monitoring Venezuela developments

  • 4

    Taiwan ‘prepared’ for Venezuela-style attack: MND

  • 5

    EVA pilot suspended for striking first officer