Nexperia Dispute Triggers Global Auto Chip Shortage

The Netherlands seized Dutch chipmaker Nexperia amid concerns about technology transfers to its Chinese parent Wingtech and the company’s inclusion on U.S. blacklist lists, and Beijing imposed retaliatory export controls that have sharply curtailed exports from Nexperia’s China (Dongguan) operations. The cuts have throttled shipments of billions of basic power‑control semiconductors used across modern cars and forced production slowdowns, including a halving of output at Honda’s Alliston, Ontario plant. Automakers warned plants could be idled within days; Volkswagen said meeting its financial targets depends on securing enough chips, Nissan said its inventory may last only until early November, and Mercedes is scrambling to find alternatives. Nexperia’s China factory sharply scaled back hours and idled equipment, depleting inventories and raising the prospect of extended disruptions and fourth‑quarter losses. The disruption underscores the fragility of global auto supply chains and has prompted calls for high‑level government intervention and accelerated efforts in China to build local testing and chip‑localisation capacity.