Car manufacturers in Europe and Japan, including Volvo, Volkswagen, Honda, and Nissan, have expressed concerns that the recent conflict between the Netherlands and China regarding the semiconductor company Nexperia could disrupt production at their factories. The Dutch government has taken control of Nexperia, which is headquartered in the Netherlands, in response to concerns from the United States about the chipmaker’s ownership by the Chinese firm Wingtech.
This action has prompted a strong response from Beijing, leading to a ban on exports from Nexperia. This situation aggravates the existing tensions between China and the US, especially ahead of a planned meeting between leaders Donald Trump and Xi Jinping. The Japanese Automobile Manufacturers Association, representing companies like Nissan, Toyota, and Honda, received a warning that the supply of chips could soon be compromised, potentially affecting manufacturing operations.
The German car trade association, VDA, echoed these concerns, stating that there could be significant production limitations if the interruption in chip supplies persists. VDA members received a notification on October 10 from Nexperia indicating an inability to fully guarantee chip supply to the automotive sector. In response, the VDA held discussions with Germany’s economy minister to seek swift solutions.
Several companies, including Volkswagen, confirmed that some of their vehicles use components from Nexperia, although production has not yet been affected. Nonetheless, they acknowledged the risky nature of the evolving situation. Meanwhile, industry bodies in the UK are also monitoring developments closely, indicating that unresolved supply issues could severely impact vehicle production.
Nexperia is a key producer of semiconductors utilized widely in the automotive sector, with most chips packaged in China before being sold globally. As these developments unfold, manufacturers are assessing their positions and preparing for potential disruptions.
Source: https://www.theguardian.com/business/2025/oct/23/volvo-vw-carmakers-dutch-takeover-chinese-chipmaker-nexperia-japanese