US EditionHow the Nexperia Chip Crisis Upended Auto Supply Chains – Again
- Nexperia's factory in Dongguan, China, has become a significant bottleneck in global auto production due to the Dutch government seizing control of the company, prompting China to halt exports of automotive chips and impacting automakers like Nissan and Honda, who faced production cuts and operational disruptions.
- The Nexperia crisis highlights vulnerabilities in the auto industry, where just-in-time inventory practices and geopolitical tensions can suddenly disrupt critical supply chains.
- Automakers are facing the challenge of adapting their supply chains, with demands for higher inventories and alternative sourcing, as noted by industry experts who warn that geopolitical shocks will continue to reshape chip sourcing strategies.
- China has begun allowing some Nexperia exports to resume, providing temporary relief to automakers, although the situation underscores the vulnerabilities of relying on low-cost chips.
13 Articles
13 Articles
The Dutch government's sudden intervention in Nexperia sent shockwaves through the sector in China. Beijing is all too aware...
Nexperia Chip Freeze Exposes Auto Industry’s Hidden China Dependence
A single factory in Dongguan, China owned by Dutch chipmaker Nexperia but controlled by its Chinese parent Wingtech has become the latest bottleneck to cripple global auto production. Beijing halted exports of Nexperia’s low-cost automotive chips after the Dutch government temporarily took control of the company’s headquarters over national security concerns. Automakers were blindsided: these […] The post Nexperia Chip Freeze Exposes Auto Indust…
VW and other car companies once again have a difficult time. The reason for this is threatening chip bottlenecks. But in the middle of the crisis, VW surprises with a plan.
How the Nexperia chip crisis upended auto supply chains – again
DONGGUAN, China (Reuters) -A factory next to a weed-ridden lot in China’s industrial south has become a global choke point for automotive chips, upending a sector that just a few years ago swore it wouldn’t be caught again by supply-chain disruptions. Automakers vowed to strengthen supply lines after COVID-19 snarled semiconductor output in 2020 and a Japanese factory fire aggravated the shortage a year later. But the crisis engulfing Dutch chip…
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