TOKYO/BERLIN: Car manufacturers around the world are rushing to secure semiconductor supplies as a sudden shortage linked to Dutch chipmaker Nexperia threatens to disrupt global vehicle production within weeks.
The crisis erupted after Beijing banned exports of Nexperia chips from China, retaliating against the Dutch government’s move to seize control of the company last month. The Netherlands cited national security concerns over Nexperia’s Chinese parent, Wingtech, which the United States has flagged as a potential security risk.
Automakers and suppliers are now scrambling to assess how much inventory they have left. The European Automobile Manufacturers’ Association warned that factories could face shutdowns as chip stocks “rapidly dwindle,” saying it would take months for alternative suppliers to ramp up output.
At the Japan Mobility Show, Nissan’s Chief Performance Officer Guillaume Cartier said the company had enough chips to last only through the first week of November. “It’s a big issue,” Cartier told reporters. “For the moment we don’t have full visibility.”
Honda said it suspended production at one of its plants in Mexico and was scaling back operations in the United States and Canada, while Mercedes-Benz confirmed it was searching globally for backup suppliers. “We’re scouring the world to look for alternatives,” said CEO Ola Kaellenius, noting that the company was “covered for the short term.”
Kaellenius added that this shortage differs from the pandemic-era supply crunch because it is now “rooted in politics” rather than logistics, and would likely require a political solution.
In Brazil, some manufacturers could be forced to halt operations within two to three weeks if the crisis persists, a government official said.
Nexperia’s semiconductors are widely used in car electronics, from braking systems to battery management. The sudden supply disruption adds to the auto industry’s mounting challenges, which already include U.S. tariffs, Chinese export controls on rare earths, and rising costs linked to the electric vehicle transition.
Even automakers that built up chip reserves after the pandemic are now finding themselves vulnerable to smaller suppliers deep in the production chain. “You can have visibility at your Tier 1 suppliers,” Cartier said, “but it becomes much harder further down.”
Some carmakers say they are faring better for now. General Motors said production had not yet been affected, and Lucid Group CEO Marc Winterhoff told the Reuters Automotive USA Conference that its engineers were identifying alternate suppliers. “It’s developing in the right direction,” he said.
Industry experts warn the situation could soon force automakers to pause assembly lines or switch to substitute components to keep plants running.
“This is very likely a quite critical situation,” said Klaus Schmitz, partner at consultancy Arthur D. Little. “For sure, the companies will now negotiate with China and so will governments, most prominently the U.S.”