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Numerous warnings about the risk of production shutdowns have been issued by the European automotive industry, amid tensions between China and the Netherlands over chipmaker Nexus, which are disrupting the supply chains of many car manufacturers.
At the heart of this controversy is Nexperia – a key chip supplier for the automotive industry, though little known to consumers. The Dutch government recently seized control of Nexperia, citing concerns about intellectual property security related to its Chinese parent company, Wingtech, which has already been listed by the US as a national security risk.
In response, China banned Nexperia's Chinese subsidiary and its subcontractors from exporting "certain finished components and assembly parts." This severely impacted the chip supply chain for European automakers.
Beatrix Keim, Director of Business Development and China Projects at the Center for Automotive Research (CAR), stated: "All the chips currently manufactured at Nexperia China are supplied to Tier 1 suppliers in the automotive industry. These are not high-tech chips, but rather standard chips supplied to almost all European car manufacturers. Therefore, any company that buys chips from Nexperia will be affected."
For the time being, production will continue; however, with common chip types like those from Nexus, automakers typically only stock enough components for one or two months. Some companies are trying to find alternative sources of supply, but this is not an easy task.
"It's very difficult to switch to other suppliers because the approval process for changing components is very complex and can take weeks or even months. In addition, they need to adjust production capacity, prepare input materials, and accept new prices when supplies become scarce. Even though these components are inexpensive, when demand spikes, suppliers can impose higher prices. Automakers will have to race against time and price to secure the right to supply first," said Beatrix Keim, Director of Business Development and China Projects at the Center for Automotive Research (CAR).
According to research firm TechInsights, Nexperia currently holds approximately 40% of the chip market share in the automotive transistor and diode segment – a significant enough proportion to have a major impact on the entire industry. Therefore, the risk of production disruptions could spread beyond Europe, precisely at a time when automakers are already vulnerable to the effects of fluctuating tariffs or tight supply of rare earth elements.
Source: https://vtv.vn/nganh-o-to-chau-au-lao-dao-vi-thieu-chip-thong-thuong-100251024163338696.htm
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