Global automotive chip supplies face renewed disruption after Dutch authorities seized control of Nexperia, followed by Chinese export controls on its local factories. As a leading automotive-grade power device supplier, Nexperia’s chips are critical for basic functions like switches and steering in vehicles, with over 60% of its $2.06 billion 2024 revenue coming from the auto sector.
The fallout is immediate: European carmakers hold only weeks of inventory, and switching to alternatives like Infineon could take months. Industry groups warn that without a resolution, global auto production could stall. Major players like Volkswagen have formed task forces to assess risks, while Bosch and other suppliers are urgently engaging with Nexperia. The company has invoked force majeure to suspend contractual obligations and is seeking export exemptions, though progress remains unclear.
The situation highlights broader geopolitical tensions, with U.S. “piercing rules” reportedly influencing the Dutch court’s actions, drawing opposition from China for destabilizing supply chains.
ICgoodFind : The Nexperia crisis exposes automotive chip vulnerability, urging manufacturers to diversify sources and strengthen contingency plans.
