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.
From its humble beginnings in 2009 to making its mark on the international stage, the Simola Hillclimb has always had one overriding mission: to draw more visitors to the scenic Garden Route town of Knysna to enjoy an unmatched blend of motorsport and entertainment.
Nissan Motor Co., Ltd. has announced that its subsidiary, Nissan Motor India Pvt. Ltd., is launching the all-new Gravite, a 7-seater multi-purpose vehicle (MPV).
The spirit of innovation and growth continues to drive the “Go and Change” movement forward as Walkot Cars celebrates almost four decades of servicing the local Newcastle community.
Advertisement
Advertisement
You can't buy happiness but you can buy cars and that's kind of the same thing.
Unknown
Global automotive manufacturers are recalibrating their ambitions after a costly miscalculation of global demand for electric vehicles.
BMW Group’s Cell Recycling Competence Centre in Salching is rapidly becoming a cornerstone of Europe’s transition toward a resilient circular battery economy.
The European Commission charts a zero-emission vehicle future for vehicles exported to Europe, while holding the commitment to reducing CO2 emissions from all new vehicle sales.
