Automaker Groups Warns Nexperia Chip Halt Could Rapidly Disrupt US, European Vehicle Production

Major auto industry associations on both sides of the Atlantic are warning that a fast-escalating semiconductor dispute involving Chinese-owned chipmaker Nexperia could trigger production stoppages within weeks, jeopardizing output in the United States and Europe while reviving fears of a new supply chain crisis.

Nexperia, owned by China’s Wingtech Technology but headquartered in the Netherlands, notified customers on Oct. 10 that it could no longer guarantee delivery of critical automotive chips after China’s Ministry of Commerce issued export controls blocking shipments of certain components from its Chinese manufacturing sites, according to the European Automobile Manufacturers’ Association.