A growing dispute inside one of Europe’s largest chipmakers is threatening to derail automotive production across the continent just as the industry begins to recover from years of semiconductor supply instability.
Netherlands-based Nexperia halted shipments of silicon wafers to its Chinese backend facility in October. The internal freeze follows the Dutch government’s October decision to seize control of the company, oust its China-based CEO, and impose tighter oversight over operations. That move, prompted by what officials described as “serious governance shortcomings,” has fractured the relationship between Nexperia’s EU and China units and left carmakers warning that inventories could run out within weeks, a potentially "devastating" outcome.
While some limited exports have resumed following a recent easing of Beijing’s own export controls on chipmaking tools and materials, that partial reopening has not resolved the impasse. According to ACEA, the European car industry’s main trade group, the issue is no longer regulatory but operational, with Nexperia Netherlands having suspended direct supply to China, citing financial misconduct by the subsidiary and a refusal to comply with internal directives.
“We welcome the Chinese announcement lifting export controls,” ACEA said in a statement, “but we will not have enough chips to meet global demand as long as there are restrictions on the export of wafers to China. We are moving in the right direction, but it is not solved yet.”
Volkswagen said that while its plants in Germany have not yet been impacted, the situation remained “dynamic and uncertain.” Other automakers suggested they had only a few weeks of buffer stock left and urged the company to resolve the standoff internally.
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