THE HAGUE / LONDON (IT BOLTWISE) – The Dutch government’s takeover of Nexperia has triggered a new chip crisis that threatens the European automotive industry. Political tensions with China are leading to supply shortages for key semiconductors, which could significantly impact production.
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The recent takeover of Nexperia by the Dutch government has triggered a new crisis in the European automotive industry. This development is not only an economic problem, but also a geopolitical dilemma. The Hague’s decision to take control of Nexperia was motivated by security concerns about its Chinese parent company Wingtech. However, this measure prompted an immediate response from Beijing, which stopped exports of Nexperia chips, which are essential for vehicle controls.
The implications of this decision are far-reaching. Nexperia is a leading supplier of simple semiconductors used in control devices and voltage regulators. With a global market share of 40 percent and millions of components produced weekly, the sudden shutdown is a major blow to the European industry. Car manufacturers, which had only just recovered from the 2021 chip crisis, are now once again facing significant challenges.
Alarm bells are ringing at the headquarters of Volkswagen, BMW and other major automobile manufacturers. Companies have already been informed about possible production stops, and suppliers such as ZF have formed task forces to find alternative sources of supply. But finding new suppliers is difficult because capacity cannot simply be built from scratch. Experts warn that the situation could drag on for 12 to 18 months.
This crisis highlights Europe’s dependence on non-European supply chains and the strategic weakness of the industry. Despite efforts to achieve a fifth of global chip production in Europe by 2030, the current situation shows how far this goal is still. In the long term, European industry must concentrate on strengthening its production base in order not to continue to be a pawn of international interests.
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