A geopolitical dispute over Nexperia, the Dutch chipmaker owned by China's Wingtech Technology, has exposed critical weaknesses in automotive supply chains worldwide.
The crisis erupted in September 2025 when the Netherlands government seized control of Nexperia, citing national security concerns around governance structures and potential technology leakage. China responded immediately by blocking chip exports from Nexperia's manufacturing sites on the mainland.
The impact on car production has been significant. Nexperia is a leading global supplier of discrete semiconductors, the humble yet essential transistors, diodes and MOSFETs that regulate power systems, lighting and safety features across virtually all modern vehicles. Whilst these components don't grab headlines like advanced computing chips do, they're indispensable to automotive manufacturing.
Market analysts believe that Nexperia holds approximately 40 per cent of global supply in select discrete semiconductor categories for the automotive industry. When a supplier of this scale faces disruption, even temporarily, vehicle manufacturers have extremely limited room to manoeuvre.
German automotive trade bodies and their international counterparts recently warned of potential factory stoppages if supply uncertainties persist. Carmakers have been forced to audit their component stockpiles and seek alternative suppliers, a complex undertaking requiring months of testing and safety certification for automotive-grade electronics.
There are preliminary signs of improvement. Early November reports suggest that China has begun releasing Nexperia chips destined for civilian applications, alleviating some immediate supply constraints. Volkswagen and other leading manufacturers have confirmed partial restoration of deliveries. Nevertheless, the episode has highlighted just how exposed global automotive supply chains remain to political disputes.
Beyond immediate production concerns, the Nexperia situation has reignited conversations about Europe's dependence on foreign-owned semiconductor infrastructure and the pressing need for diversified sourcing strategies. For the automotive industry, the takeaway is unambiguous: even inexpensive, basic components can become critical bottlenecks when geopolitics interferes with manufacturing.
In a sector built around just-in-time delivery and intricate international sourcing networks, the Nexperia crisis demonstrates that supply chain robustness and backup options may now rival cost efficiency in strategic importance.
Motus Holdings Limited reported an improved operational performance for the six months ended 31 December 2025, with its South African operations remaining the primary contributor to Group performance.
Mazda South Africa has added a new model to its CX-3 range, one of the better selling nameplates of the brand.
Volvo Trucks South Africa recently announced its top achieving dealers for 2025, recognising excellence across 23 categories spanning over its full value offering, including parts, finance, service, uptime solutions, safety, and technical services.
Advertisement
Advertisement
Have you ever noticed that anybody driving slower than you is an idiot, and anyone going faster than you is a maniac?
George Carlin
Leapmotor has launched the Leapmotor App in South Africa, giving C10 REEV customers seamless smartphone-based access to their vehicle and connected services.
Ethiopia’s decision to prohibit the import of petrol and diesel vehicles in 2024 has set in motion a rapid restructuring of its transport sector, prompting a remarkable surge in the adoption of electric vehicles (EV).
Volvo Cars has issued a major recall affecting more than 40 000 units of its EX30 electric SUV after discovering that certain high‑voltage battery modules pose an overheating risk.
