Europe’s auto industry is preparing for production disruption within days because of China’s export restrictions on semiconductors made by Nexperia.
Chip shortages are likely to hit key suppliers within a week, while the impact could spread across the entire sector within 10 to 20 days, according to people familiar with the matter, who asked not to be identified as the discussions are private.
Beijing has blocked Nexperia — a Dutch chipmaker owned by China’s Wingtech Technology Co. — from exporting products made at its Chinese plants. The move came after the Dutch government seized control of the company under emergency laws meant to safeguard strategic production.
Carmakers and their suppliers are holding crisis meetings with government officials to map out contingency plans, but have warned that sourcing and qualifying replacement components will take months, not days.
The fallout is expected to extend beyond Europe, with US automakers also exposed through smaller parts and electronics makers that rely on Nexperia chips, the people said. The industry was blindsided by the Dutch government’s move to take control of Nexperia after pressure from Washington, two of the people said.
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Europe’s auto industry is preparing for production disruption within days because of China’s export restrictions on semiconductors made by Nexperia.
Chip shortages are likely to hit key suppliers within a week, while the impact could spread across the entire sector within 10 to 20 days, according to people familiar with the matter, who asked not to be identified as the discussions are private.
Beijing has blocked Nexperia — a Dutch chipmaker owned by China’s Wingtech Technology Co. — from exporting products made at its Chinese plants. The move came after the Dutch government seized control of the company under emergency laws meant to safeguard strategic production.
Carmakers and their suppliers are holding crisis meetings with government officials to map out contingency plans, but have warned that sourcing and qualifying replacement components will take months, not days.
The fallout is expected to extend beyond Europe, with US automakers also exposed through smaller parts and electronics makers that rely on Nexperia chips, the people said. The industry was blindsided by the Dutch government’s move to take control of Nexperia after pressure from Washington, two of the people said.