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Automakers Warn of Production Risk as Nexperia Shipments Falter

Carmakers report only weeks of inventory after government moves left the chipmaker unable to guarantee deliveries.

Overview

  • Industry groups in Europe and the United States warned of possible production stops within weeks after Nexperia told customers on October 10 it could no longer guarantee deliveries.
  • The Netherlands placed Nexperia under external control and removed CEO Zhang Xuezheng in late September, and China subsequently restricted exports of components built with Nexperia chips.
  • US authorities had earlier blacklisted Nexperia owner Wingtech, and court documents indicate Washington pressed the Dutch government to act.
  • BMW, Mercedes-Benz, and Volkswagen say production is currently running but have activated crisis measures, with inventories estimated at roughly four to six weeks.
  • Nexperia supplies widely used discrete semiconductors, with hundreds per car and a major plant in Hamburg serving about 10% of the global market, and alternatives will take months to qualify and ramp.