German automaker Volkswagen has warned of potential temporary production halts following China’s export restrictions on semiconductors produced by Nexperia — a Chinese-owned company headquartered in the Netherlands, CNBC reported via News.ro.
A company spokesperson clarified that Nexperia is not a direct supplier to Volkswagen, but its components are used by the automaker’s suppliers in vehicle assemblies.
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“We are in close contact with all parties involved to identify potential risks early and take the necessary decisions,” the spokesperson said, noting that production has not yet been affected, though “short-term effects cannot be ruled out.”
The warning comes amid growing trade tensions between China and the Netherlands, after the Dutch government took control of Nexperia last month, citing national security concerns and fears that the company’s technology “could become unavailable in an emergency.”
In response, China blocked exports of Nexperia’s finished products, triggering significant concern across Europe’s automotive industry. The German Association of the Automotive Industry (VDA) also warned that the dispute could lead to “significant production restrictions” if the chip supply chain is not restored quickly.
Volkswagen’s shares dropped by 2.2% amid escalating tensions in the global semiconductor supply chain.
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