The European Union's tech chief has called an emergency meeting with chipmaker Nexperia to address a worsening supply crisis. This follows a separate virtual meeting with the CEOs of major European chipmakers like Infineon, STMicroelectronics, and NXP to assess supply chain risks.
The crisis erupted after the Dutch government took control of Nexperia, a Dutch firm owned by China's Wingtech, to prevent a potential transfer of operations to China. China subsequently imposed export controls on the company, disrupting its ability to guarantee shipments. This has caused panic in the global automotive and electronics industries, as Nexperia's low-cost transistors and diodes are critical components in everything from car batteries to lighting systems, with Volkswagen already facing potential production halts.
The situation highlights the fragility of Europe's semiconductor supply chain, prompting a push to accelerate the EU Chips Act 2.0. The EU is also preparing contingency plans, which include creating strategic stockpiles and diversifying its supplier network.
ICgoodFind : The Nexperia disruption underscores the strategic value of basic chips, forcing a reevaluation of global semiconductor trade and supply chain security.
