VDA warns of potential automotive production disruptions amid Nexperia crisis
The German Association of the Automotive Industry (VDA) has issued a stark warning about potential production disruptions linked to semiconductor manufacturer Nexperia.
In a statement on October 21, VDA President Hildegard Müller said that on October 10, automobile manufacturers and suppliers received notice from Nexperia indicating the company can no longer fully guarantee the supply of its chips to the automotive supply chain.
“Nexperia is a major global supplier of semiconductors, which are frequently used in electronic control units for vehicle electronics systems, but are also relevant for other industries,” Müller said. She added that the situation “could soon lead to significant production restrictions – or even a stop in production – if the interruption of Nexperia chip deliveries cannot be resolved in short term.”
The VDA said it is actively engaging with affected companies, the German federal government, and the European Commission to coordinate immediate measures and secure supply continuity. "The current focus should be on finding quick and pragmatic solutions," VDA writes.
The warning comes amid a series of unprecedented interventions in Nexperia’s operations. In late September, the Dutch Ministry of Economic Affairs invoked the Goods Availability Act, citing “serious governance shortcomings” at the company. Shortly thereafter, the Dutch Enterprise Chamber suspended Nexperia CEO Zhang Xuezheng and placed the voting rights of parent company Wingtech Technology under an independent administrator.
The Dutch government has also prohibited Nexperia from relocating operations, dismissing executives, or making major strategic decisions without approval for one year. Meanwhile, export controls imposed by the US and China have further complicated the company’s ability to maintain an uninterrupted supply.
