European carmakers could face significant disruption to manufacturing without a swift resolution to a trade and intellectual property dispute over chipmaker Nexperia between China and the Dutch government, an industry association warned yesterday.
The dispute could cause further strain on Europe’s automotive sector, whose carmakers and suppliers are already battling tariffs, foreign competition and weak demand.
It also thrusts Nexperia into a trade war between the world’s two biggest economies, with US President Donald Trump ratcheting up pressure on tech as China curbs rare earth exports.
ACEA, the European Union’s auto association, said it was “deeply concerned by potential significant disruption to European vehicle manufacturing if the interruption of Nexperia chips supplies cannot be immediately resolved”.
Carmakers and their suppliers received notice from Nexperia last week that it could no longer guarantee delivery of its chips, the ACEA said in a statement.
“Without these chips, European automotive suppliers cannot build the parts and components needed to supply vehicle manufacturers and this therefore threatens production stoppages.”
“We hope to get all challenges resolved soon to the best of everyone’s interests,” a Nexperia spokesperson said.
He said the company could not comment further beyond a statement that said it is engaging with Chinese authorities to obtain an exemption from restrictions.
The Dutch government announced on Sunday that it had as of September 30 taken control of Chinese-owned computer chipmaker Nexperia, citing worries about the possible transfer of technology to Nexperia’s Chinese parent company, Wingtech.
Court documents showed the Dutch government’s move came after months of rising US pressure on the company. Nexperia was at risk of being impacted by a new US rule that extends export control restrictions to companies at least 50 per cent owned by one or more entities on the US entity list.
Washington put Wingtech, which has 100pc ownership of Nexperia, on the US list in late December.
The Chinese commerce ministry issued on October 4 an export control notice prohibiting Nexperia China and its subcontractors from exporting specific finished components and sub-assemblies manufactured in China, according to a statement Nexperia published on Tuesday.
Nexperia chips are not technically sophisticated but are needed in large volumes. Its biggest manufacturing site is in Hamburg, Germany, but most of its chips are packaged and assembled into larger products in China.
Volkswagen and BMW are among the carmakers whose supplier networks include Nexperia, with Bosch among the German auto suppliers who use its chips.
Volkswagen and BMW both said production had not yet been impacted by the issues but that they were working to identify potential supply risks.
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