Europe’s auto industry faces new chip shortage crisis
European carmakers face potential factory shutdowns after China blocked semiconductor exports from Dutch company Nexperia. The Netherlands seized control of the Chinese-owned firm in September under a 1952 emergency law, prompting Beijing to halt chip shipments back to Europe.
Nexperia supplies nearly half of the electronic components used in European vehicles, including the diodes and transistors modern cars require. The European auto industry warned that parts makers cannot produce the components needed without these chips, threatening production across the continent.
Volkswagen acknowledged possible short-term stoppages while seeking alternate suppliers. French parts maker Valeo found replacements for 95 percent of its annual Nexperia purchases but awaits customer approval. Analysts predict disruptions could persist 12 to 18 months as new suppliers need time to scale production capacity and gain automaker certification.
