Trade dispute: China's retaliation hits Nexperia in the Netherlands!

Trade dispute: China's retaliation hits Nexperia in the Netherlands!

There are new developments in the trade dispute between China and the Netherlands that could put the European auto industry under pressure. Again Black Forest messenger reported, the Chinese government has sharply criticized the Dutch government. Beijing is calling on the Netherlands not to interfere in the internal affairs of chip maker Nexperia. The background: On September 30, the Dutch government decided to take control of Nexperia after concerns arose about its Chinese parent company Wingtech.

Nexperia is a major player in the semiconductor market, producing standard chips that are essential in both the auto industry and various electronic devices. This step also puts European car manufacturers in trouble, as Beijing has announced reactions that will result in export restrictions for certain Nexperia chips. Industry associations warn that these measures could have fatal consequences for production in Germany.

Trade conflict has an impact on the auto industry

The situation is getting worse: like that daily news reports, the export restrictions are particularly alarming for the automotive industry, and companies like BMW are making initial preparations for possible disruptions in production. Nexperia supplies about 10% of the global market for basic types of semiconductors such as diodes and transistors. Currently, stocks of these important chips are only sufficient for a few weeks, which could result in production stops if quick solutions are not found.

Various associations are calling for urgent measures from the affected nations. Sigrid de Vries, Secretary General of the European automobile association ACEA, emphasizes the urgency and urges quick solutions. The pressure is increasing as the trade dispute between the USA and China also leads to export restrictions for Nexperia in the USA. Particularly explosive: Nexperia is on a sanctions list in the USA due to national security concerns.

Looking for solutions

In view of this blockage, Nexperia, with around 11,700 employees worldwide and the largest factory in Hamburg, is forced to seek talks with the countries involved. The company's Chinese boss was deposed by a court ruling and the Dutch government took control of the company in a clear move after mounting pressure from the US. The US government had previously urged the Netherlands to take action.

While major car manufacturers such as BMW, Mercedes-Benz and Volkswagen have not yet reported any production losses, they are watching the situation with concern. Suppliers such as Bosch and Valeo could also be affected by the limited deliveries. Despite hints of alternative suppliers taking months for approval and production, the future of chip supply remains uncertain.

A critical situation is now emerging again in a market that was already under enormous pressure during the Corona pandemic. The auto industry, which must adapt to these changes, is confronted with the fact that access to clear raw materials and components determines geopolitical tensions.