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Berlin (Reuters) – European carmakers could face major production disruptions without a swift decision on the chipmaker’s trade and intellectual dispute between China and the Dutch government, the Induction Association warned on Thursday.
The dispute could cause further tension in Europe’s auto sector, whose chemicals and suppliers are already struggling with prices, foreign competition and weak demand.
It also threw Nexperia into the trade war between the world’s two largest economies, with US President Donald Trump ratcheting up the pressure on the technology as China Curbs Rare Earth.
Spotlight on the owner of Chinese wingtech
Acea, the European Union Association, said it is “very concerned about the significant disruption of European car manufacturing if the Nexperia Chips Supplies disruption cannot be resolved immediately”.
Carmakers and their suppliers received a notice from Nexperia last week that they can no longer guarantee the delivery of their chips, Acea said in a statement.
“Without these chips, European car suppliers cannot build the parts and materials needed to supply car manufacturers and therefore threaten production,” the statement said.
“We hope that all challenges are resolved soon for everyone,” said a Nexperia spokesperson.
He said the company could not comment beyond a statement on Tuesday that said it was working with Chinese authorities to obtain an exemption from the restrictions.
The Dutch government announced on Sunday that from September 30 it will take control of the Chinese chipmaker owned by the Chinese nexperia, to express concerns about the transfer of Nexperia’s Chinese technology, wingtech.
Court documents revealed that the Dutch government’s move came after months of easing pressure on the company. Nexperia is vulnerable to the new US influence that extends the export control limits to companies with at least 50% in one or more of the US business listings.
Washington placed Wingtech, which has 100% ownership of NEXPERIA, on the US list in late December.
China’s Ministry of China issued on October 4 an export control notice prohibiting Nexperia China and its foreign buyers from exporting certain finished parts and subassemblies made in China, according to a Nexperia statement published on Tuesday.
Nexperia’s chips are not good technology but they are necessary for large studies. Its main manufacturing site is in Hamburg, Germany, but most of its chips are assembled and assembled into larger products in China.
Automakers, suppliers are working to identify hazards
Volkswagen and BMW are among the automakers whose supplier networks include nexperia, with bosch among the German auto suppliers using its chips.
Volkswagen and BMW both said production had not yet been hit but that they were working to identify supply risks.
“We are closely monitoring the current situation and are in contact with the manufacturer of Nexperia, which is one of our electronics suppliers,” said a Bosch spokesperson.
Mercedes-Benz said it was closely monitoring the situation and communicating with affected stakeholders, without providing further details. A spokesman declined to say whether Nexperia was part of the company’s provider network.
“Stellantis is closely monitoring the situation and is working with Nexperia and other suppliers to assess potential impacts and develop mitigation measures,” said a Carmaker spokesperson.
China’s Ministry of Commerce, responding to a question about Nexperia, said on Thursday that it opposes interference in the internal affairs of businesses through administrative means, and that it will take necessary measures to protect the rights and interests of Chinese people.
(Additional reporting by Toby Stillenling in Amsterdam, CE Pan in Beijing and Brenda Goh in Shanghai; Editing by Matthias Williams, Mark Potter and Ed Osmond)
