Major automakers have warned that a dispute between China and the Netherlands over the Nexperia chipmaker could quickly hinder U.
S. car production after Nexperia told customers it could not guarantee chip shipments, Reuters reported.
The European Automobile Association ACEA said that "production could be significantly disrupted," and in the United States, the Automotive Innovation Alliance called for a quick resolution of the situation: "if the supply of automotive chips does not resume – and quickly – it will disrupt car production in the United States and many other countries and have a side effect on other industries."", – said John Bozella, CEO of AAI.
The alarm arose after the Dutch government's decision on September 30 to take control of Nexperia amid concerns about technology transfer to its Chinese parent company Wingtech, which was added to the list of entities subject to U.
S. export controls in late December, and after China imposed export controls on October 4 that prohibit Nexperia China and its subcontractors from exporting certain components. Some automakers told Reuters that U.
S. factories could feel the impact as early as next month. Nexperia components are critical to the production of parts and cars in the United States, and although Volkswagen and BMW are not reporting an immediate impact in Europe, both companies are analyzing potential supply risks as the industry prepares for cascading shortages.
