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Dutch chipmaker Nexperia has warned Japanese automotive customers that it may no longer be able to guarantee supply, heightening fears of new disruptions across the global auto industry.
The Japan Automobile Manufacturers Association (JAMA) confirmed that several Japanese parts suppliers received notifications from the company warning them of the disruption.
JAMA released a statement in response to the episode, saying,
“These semiconductors are essential for electronic control units and other key vehicle systems. This incident could have a serious impact on global production, and we hope for a swift and practical resolution.”
Nexperia, headquartered in Nijmegen in the Netherlands, has become a flashpoint in escalating trade tensions between the Netherlands, the United States, and China. Earlier this month, the Dutch government seized control of the company- previously owned by Chinese parent Wingtech Technology Co.- to safeguard domestic semiconductor supplies.
Beijing responded by imposing new export controls on Nexperia’s China operations, insisting that its subsidiary continues to operate “in an orderly manner” and in compliance with Chinese law. The standoff has effectively divided the company’s European and Chinese units and placed automakers in a precarious position.
Automakers worldwide are assessing their resilience to the disruption to the supply chain. Volkswagen has formed a task force to map vulnerabilities, while Toyota and Honda are monitoring developments closely. Mitsubishi Electric said its reliance on Nexperia is limited and that it is preparing to switch to alternative components if needed.
The crisis comes amid a broader landscape of trade strains. China has threatened tighter export controls on rare earth minerals, vital for electric vehicle motors and batteries. The European Union’s trade chief, Maros Šefčovič, confirmed that Chinese officials will travel to Brussels soon to discuss these restrictions.
Financial analysts warn that the dispute could affect automakers’ earnings outlooks as they prepare to release quarterly results. “If political tensions drag on, the impact could spread across the sector,” said Citi analyst Arifumi Yoshida.
This disruption underscores the fragility of global supply chains and how deeply geopolitical conflicts now shape the economics of car manufacturing.
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