European Carmakers Brace for Supply Disruptions as Nexperia Halts China Shipments

Europe’s auto industry is facing renewed supply chain concerns after Dutch semiconductor manufacturer Nexperia suspended wafer shipments from China. The move follows a dispute with management at its Dongguan facility and comes weeks after the Dutch government seized temporary control of the company over national security issues.

Nexperia, whose chips are essential for power systems, sensors, and electronics in vehicles made by Volkswagen, BMW, and Stellantis, informed customers that deliveries were halted from 26 October. Officials in The Hague fear that production capabilities could shift out of Europe amid rising trade tensions with China, which has added its own export restrictions, further complicating component flows.

The European Automobile Manufacturers’ Association has warned that shortages of basic control chips are escalating daily and could soon disrupt assembly lines. Governments and industry groups are now pushing for urgent diplomatic talks to restore supply routes and protect European automotive output through the remainder of the year.

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