EU automotive industry braces for production crisis due to China’s restrictions on Nexperia chip exports
The European auto industry is bracing for major production disruptions after China’s decision to restrict exports of semiconductors from Nexperia. The shortage of key chips is expected to start affecting suppliers within days, and within 10-20 days the problem could spread to the entire sector. Bloomberg reported this, citing Hildegard Müller, president of the German automotive industry association VDA.
Beijing has banned Dutch company Nexperia, owned by China’s Wingtech Technology Co., from exporting chips made at its Chinese factories. The decision was in response to the Dutch government taking the company under emergency laws to protect strategic production.
“The situation could soon lead to significant production restrictions – or even a shutdown – if the disruption to Nexperia’s supply is not resolved soon,” said Hildegard Müller.
The problem could also affect US automakers, as smaller suppliers of parts and electronics also depend on Nexperia chips. Volkswagen AG has already set up a special working group to assess the potential impact on supply chains.
A Mercedes-Benz Group AG spokesman said the company was closely monitoring the situation together with its partners. The manufacturer currently has short-term stocks of chips, but the situation remains unstable.
“We are working intensively with our partners to avoid potential supply shortages,”, a Mercedes-Benz representative said.
