Nexperia's Chip Supplies Suspended Amid Trade War Threats to Global Car Production
A major escalation of tensions between Europe and China has taken the automotive industry by storm, as Dutch-based chipmaker Nexperia has halted supplies to its Chinese factory. The move, which comes after a series of trade wars and diplomatic spats, threatens to cripple car production worldwide.
At the center of the dispute is Nexperia's Chinese owner, Wingtech Technologies, which has been accused of attempting to transfer intellectual property to another company it owns. In response, the Dutch government took control of the chipmaker using national security laws, citing concerns that this would jeopardize European chip capacity.
However, China retaliated by halting exports from all Nexperia's factories in China, prompting warnings that production lines at EU car factories could close within days if the situation is not resolved. The impact on global car production is already being felt, with several major manufacturers, including Nissan and Honda, warning of potential disruptions to their supply chains.
Nexperia has suspended shipments to its Chinese factory citing non-payment from local management, but officials say that resuming supplies could be possible if payment terms are met. However, the company remains committed to de-escalating the situation, while also continuing to ship products to a smaller factory in Malaysia.
The shortage of key components, such as power control chips made by Nexperia, has already affected several car manufacturers, with Volkswagen warning that its annual profit targets were at risk without sufficient chips. Toyota, however, said it was not facing major supply problems, despite potential long-term impact.
European officials are scrambling to address the crisis, with EU trade commissioner Maroš Šefčovič set to meet with Chinese counterparts to discuss the situation. Meanwhile, Nexperia's interim CEO Stefan Tilger emphasized the need for dialogue and de-escalation to prevent significant production restrictions or even stoppages.
The dispute highlights the growing tensions between Europe and China in the high-tech sector, where both sides have significant interests and investments. As the automotive industry teeters on the brink of a global crisis, officials are racing against time to find a solution that will avoid crippling shortages and ensure the continued supply of critical components.
A major escalation of tensions between Europe and China has taken the automotive industry by storm, as Dutch-based chipmaker Nexperia has halted supplies to its Chinese factory. The move, which comes after a series of trade wars and diplomatic spats, threatens to cripple car production worldwide.
At the center of the dispute is Nexperia's Chinese owner, Wingtech Technologies, which has been accused of attempting to transfer intellectual property to another company it owns. In response, the Dutch government took control of the chipmaker using national security laws, citing concerns that this would jeopardize European chip capacity.
However, China retaliated by halting exports from all Nexperia's factories in China, prompting warnings that production lines at EU car factories could close within days if the situation is not resolved. The impact on global car production is already being felt, with several major manufacturers, including Nissan and Honda, warning of potential disruptions to their supply chains.
Nexperia has suspended shipments to its Chinese factory citing non-payment from local management, but officials say that resuming supplies could be possible if payment terms are met. However, the company remains committed to de-escalating the situation, while also continuing to ship products to a smaller factory in Malaysia.
The shortage of key components, such as power control chips made by Nexperia, has already affected several car manufacturers, with Volkswagen warning that its annual profit targets were at risk without sufficient chips. Toyota, however, said it was not facing major supply problems, despite potential long-term impact.
European officials are scrambling to address the crisis, with EU trade commissioner Maroš Šefčovič set to meet with Chinese counterparts to discuss the situation. Meanwhile, Nexperia's interim CEO Stefan Tilger emphasized the need for dialogue and de-escalation to prevent significant production restrictions or even stoppages.
The dispute highlights the growing tensions between Europe and China in the high-tech sector, where both sides have significant interests and investments. As the automotive industry teeters on the brink of a global crisis, officials are racing against time to find a solution that will avoid crippling shortages and ensure the continued supply of critical components.
Like, I was just watching an episode of 'Mr. Robot' and it was all about corporate espionage and chip tech, but now it's happening in real life? 
The EU and China are going at it over trade secrets and intellectual property, and now car manufacturers are feeling the heat. Nissan is already warning of potential disruptions to their supply chains... that's like something out of a 'Sons of Anarchy' episode! 
I'm rooting for Stefan Tilger from Nexperia to sort this out ASAP. Can't imagine if production lines in EU factories just shut down overnight. That would be disastrous! 
& what about all those car parts that need to be replaced ASAP? 
I had friends who just bought their dream cars and now they're stuck waiting for parts because of this trade war nonsense 
. Anyway, I hope someone can sort out this mess soon, we don't need another economic crisis on top of everything else 
.
this trade war is getting outta hand... i mean, come on, a chip shortage? it's like they're playing with fire 
... nexperia's move was probably a good one, but now we're in a mess 
... no more trade war games 
, let's focus on finding a way forward 
...
So if that gets messed up, then we're all out of luck. Nissan and Honda aren't even worried about having enough chips... what does that say about how severe this is?! 
and only one side is going to win. 
Nexperia's chip shortage is affecting major brands like Nissan 
, with Volkswagen 
. Can't we all just get along? 
EU officials are working hard to find a solution, but it's not looking good 
. We need those chips for electric cars 
and autonomous vehicles 
! 
. I hope someone comes up with a solution soon or we'll all be stuck in traffic...I mean, on the road without our cars 
.