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Dutch Takeover of Nexperia and China Curbs Threaten Auto Chip Supply

Industry leaders warn supplies could be exhausted within weeks, raising the risk of production stops.

Overview

  • The Netherlands assumed control of Nexperia and a court removed CEO Zhang Xuezheng, citing protection of sensitive technology.
  • The United States placed Nexperia on a sanctions list that restricts business with American companies.
  • China’s Ministry of Commerce barred exports of many components containing Nexperia chips, with Wingtech estimating the move affects about 80% of end products.
  • Nexperia told customers on Oct. 10 that inventories may cover only weeks, and industry groups in Europe and the U.S. warned of potential production halts without rapid political solutions.
  • Volkswagen set up a special risk team and Bosch reportedly has only weeks of stock, as Nexperia’s Hamburg site supplies widely used diodes and transistors that are hard to replace quickly.