European carmakers warn of supply shocks as Nexperia halts chip exports to China

Published on 31/10/2025 - 14:32 GMT+1

Dutch spot accumulation elephantine Nexperia has halted shipments of silicon wafers to its packaging and testing tract successful Dongguan, China, aft a conflict pinch nan plant's section guidance successful The Netherlands, raising nan consequence of caller proviso disruptions for Europe's biggest carmakers.

The move "potentially escalates nan standoff that’s already impacting automotive accumulation successful Europe and beyond," Bloomberg reported, citing a connection from nan company.

In a missive dated 29 October and signed by interim main executive Stefan Tilger, who was appointed aft nan Dutch authorities invoked its rarely-used veto powers complete backstage companies to region erstwhile CEO Zhang Xuezheng, customers were informed that supplies to Dongguan were suspended from 26 October.

The institution linked nan determination to failures by nan site's guidance to meet agreed contractual costs terms.

Nexperia makes ample volumes of alleged commodity chips utilized successful nan powerfulness control, sensors and assemblage electronics of carmakers specified arsenic BMW, Stellantis and Volkswagen.

These parts stay captious bottlenecks successful nan car manufacture moreover aft pandemic-era shortages eased. Any interruption successful wafer flows to assembly hubs tin quickly provender done to module makers and car plants.

On 30 September, nan authorities assumed impermanent power of Nexperia nether nan Goods Availability Act, citing governance shortcomings and risks to nan continuity of proviso and to Dutch and European economical information owed to ongoing confrontations pinch nan Chinese sister institution and suppliers.

Officials framed nan measurement arsenic exceptional and said halfway operations could continue, but pinch nan authority to artifact immoderate early decisions deemed harmful.

Dutch concerns were heightened by indications that instrumentality and capabilities could beryllium moved retired of Europe nether erstwhile leadership, according to consequent reporting, arsenic Chinese producers crossed respective industries use progressively protectionist measures pursuing US tariffs and EU concerns complete monopolisation.

Beijing responded connected 4 October pinch export controls that barred Nexperia China and its subcontractors from exporting specified vanished components made successful nan country, further complicating cross-border flows.

Automakers and suppliers person warned that prolonged disruption could unit output cuts and a wide slowdown successful an manufacture already facing strains owed to nan ongoing waste and acquisition standoff pinch nan US and particularly if replacement parts are not qualified successful time.

Industry groups opportunity inventories of basal power chips are bladed and that nan clip needed to move packages remains lengthy.

The Dutch authorities has said it is successful talks pinch Chinese counterparts to resoluteness export issues and stabilise supplies successful nan adjacent future. Further steps will dangle connected discussions betwixt The Hague, Nexperia's Chinese genitor Wingtech and Chinese authorities.

Key indicators to watch see whether Nexperia tin redirect wafers to different sites, immoderate relaxation of Chinese export restrictions and general guidance from European carmakers connected accumulation plans for November and December.

The European Automobile Manufacturers’ Association (ACEA) says a "critical" shortage of foundational microchips is worsening "by nan day" arsenic nan artifact connected Nexperia exports from China persists, informing of imminent disruption to European conveyance manufacturing.

ACEA urged for a rapid, negotiated solution to reconstruct cross-border spot flows, noting that sustained constraints consequence spilling complete into assembly lines.