Despite China Lifting Export Controls, "Nexperia Chip Shortage Persists"

"Only a Few Weeks of Chip Inventory Remain"

Although China has lifted export controls on chips produced by semiconductor company Nexperia, the European automotive industry continues to face a chip shortage, the Financial Times (FT) reported on November 12 (local time).

Reuters Yonhap News

Quoting sources in the automotive industry, FT reported that ongoing conflict between Nexperia’s headquarters in the Netherlands and its Chinese subsidiary has resulted in the Dutch headquarters withholding silicon wafer supplies from the Chinese subsidiary. The wafers are manufactured at Nexperia’s European plants in the Netherlands, the United Kingdom, and Germany, then shipped to the Chinese plant for assembly before being exported back to Europe and other regions.

The chip supply crisis triggered by Nexperia began when the Dutch government took control of the company at the end of September, citing concerns over technology leaks. In response, China imposed export controls on Nexperia products, most of which are produced in its domestic factories, leading to a global chip shortage in the automotive industry.

Although Chinese authorities have since eased export controls on Nexperia chips and some shipments have resumed, a European automotive executive told FT that the industry is still facing significant challenges due to the adversarial relationship between Nexperia’s Dutch headquarters and its Chinese operations.

Another executive at an automotive company said that chip inventories would last only a few weeks. He noted that while there are some wafer stocks at Nexperia’s Chinese plant, “if wafers are not supplied from Germany and the European Union, they will soon run out.”

With the urgent need to secure chip inventories, automotive companies are seeking alternative suppliers. Nexperia’s Chinese subsidiary is also reportedly looking for sources other than its headquarters.

Volkswagen, Germany’s largest automaker, stated that the situation remains uncertain. The company added that while there has been no impact on vehicle production at its German plants so far, it cannot rule out the possibility of future disruptions.

This content was produced with the assistance of AI translation services.