Nexperia Export Ban Triggers Global Auto Chip Crunch

Global automakers are rushing to secure semiconductor stocks as a new supply crunch linked to Dutch chipmaker Nexperia threatens production lines worldwide.

The crisis erupted after Beijing banned exports of Nexperia products from China, following the Dutch government’s move to seize control of the company last month over fears its Chinese parent, Wingtech, could transfer sensitive technology. 

The US has also flagged Wingtech as a potential national security risk.

Though Nexperia’s chips aren’t cutting-edge, they’re essential for vehicle systems like sensors, locks, and dashboards, leaving carmakers with few quick alternatives. 

The European Automobile Manufacturers’ Association warned that stockpiles are rapidly dwindling and replacements could take months to source.

“It’s a big issue. For the moment we don’t have full visibility. Our chip supply is only secure until early Nov," said Nissan Chief Performance Officer Guillaume Cartier. 

Honda has already suspended operations in Mexico and slowed production in the US and Canada, while Brazil’s government has warned some plants there may halt within weeks.

Mercedes-Benz CEO Ola Kaellenius said the company is scouring the world to look for alternatives.  

"The issue is rooted in politics and will require a political solution," he added.

Lucid Motors said it is sourcing alternatives, while General Motors confirmed its output remains stable.

The standoff underscores how vulnerable global supply chains remain. “In a modern high-tech car, you have pretty much all five continents inside,” Kaellenius said.

Analysts warn that without quick government action, automakers could face a repeat of the pandemic-era chip crisis that crippled global production.