European automakers are bracing for new supply chain disruptions after Dutch semiconductor manufacturer Nexperia halted silicon wafer shipments to its packaging and testing facility in Dongguan, China, following internal management disputes, according to Euronews.
The move, announced in a letter signed by interim CEO Stefan Tilger, came just weeks after the Dutch government invoked rarely used powers to take temporary control of Nexperia, citing national security and supply continuity concerns under the Goods Availability Act.
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Nexperia justified the export suspension by citing contractual payment violations by the Chinese unit’s management. However, the halt threatens to deepen existing bottlenecks in the European automotive industry, still struggling with post-pandemic chip shortages.
“The decision increases the potential bottleneck already affecting automotive production in Europe and beyond,” the company noted in a statement.
Diplomatic talks and industry impact
In response, Beijing imposed new export controls, banning Nexperia China and its subcontractors from exporting certain finished components, further complicating cross-border flows.
Automakers and suppliers warn that prolonged disruptions could force production cuts and delay vehicle assembly across Europe, especially if alternative chip packages are not approved in time.
The Dutch government is currently negotiating with China and Nexperia’s parent company, Wingtech, to stabilize supply chains. Meanwhile, the European Automobile Manufacturers’ Association (ACEA) has called the situation a “critical microchip crisis”, urging a swift diplomatic resolution to restore exports.
Key factors to watch include Nexperia’s ability to redirect wafer output, any relaxation of Chinese export restrictions, and updated production guidance from major European carmakers for November and December.
Photo: South China Morning Post
