Background on Nexperia and its Relevance
Nissan and Mercedes-Benz have recently joined other automotive companies worldwide in issuing warnings about the growing semiconductor shortage, highlighting the increasing consequences of a struggle between the Netherlands and China over Dutch semiconductor manufacturer Nexperia.
This trade and intellectual property dispute between China and the Dutch government surrounding Nexperia, whose chips are widely used in automotive components, adds to the challenges already faced by the industry due to US tariffs and Chinese restrictions on rare earths.
Nexperia’s Role and Controversy
Nexperia, a Dutch chip manufacturer, has become central to the ongoing tensions. The Chinese government has imposed an export ban on Nexperia’s finished products from its Chinese factories following the Dutch government’s acquisition of control over Nexperia in September, citing concerns about potential technology transfer to Nexperia’s Chinese parent company, Wingtech.
The US has labeled Wingtech as a potential national security risk, further complicating the situation.
Impact on Automotive Companies
Nissan’s Director of Performance, Guillaume Cartier, acknowledged the severity of the issue when speaking to the press. “It’s not a minor matter, it’s a big problem,” Cartier said regarding the impact on chip supply.
At the Japan Mobility Show in Tokyo, Cartier stated that Nissan was “okay until the first week of November” concerning chip supplies. While visibility into the supply status of their primary Tier 1 suppliers was possible, complications arose as they progressed through the supply chain.
Mercedes-Benz‘s CEO, Ola Källenius, confirmed that the company is actively seeking alternative suppliers globally due to the ongoing crisis.
Potential Consequences in Brazil
In Brazil, a significant automotive production hub, some manufacturers might be forced to halt operations for two to three weeks if the shortage persists, according to a government official.
The Brazilian government has reached out to Chinese authorities in search of a resolution, the official mentioned.
Key Questions and Answers
- What is Nexperia and why is it important? Nexperia is a Dutch semiconductor manufacturer whose chips are widely used in automotive components. The ongoing dispute between the Netherlands and China over Nexperia has led to export bans, causing a global semiconductor shortage that affects automotive companies.
- Which companies have issued warnings about the semiconductor shortage? Nissan and Mercedes-Benz are among the automotive companies that have recently warned about the growing semiconductor shortage, along with others grappling with supply chain disruptions.
- What actions are automotive companies taking to address the shortage? Companies like Nissan and Mercedes-Benz are seeking alternative suppliers globally, while trying to maintain visibility into their supply chains to mitigate the impact of the shortage.
- What are the potential consequences for automotive production in Brazil? If the semiconductor shortage continues, some automotive manufacturers in Brazil might be compelled to temporarily halt operations for two to three weeks.
- What role do governments play in resolving the crisis? Governments, such as those in Brazil and the Netherlands, are engaging with Chinese authorities to find solutions to the semiconductor shortage and its impact on the automotive industry.
