A new chip supply crisis, triggered by Dutch firm Nexperia, has disrupted global auto production, reviving concerns over supply chain fragility, Reuters reported Nov. 24.
The disruption follows the Dutch government’s decision to seize control of Nexperia over national security risks tied to its Chinese parent, Wingtech. In response, China suspended exports from Nexperia’s Dongguan facility — a major source of basic chips used in automotive components.
Major automakers, including Nissan and Honda, have curtailed production, while top suppliers like Bosch have reduced factory output. The halted supply of low‑end chips has led to cascading delays across the sector.
Despite promises to diversify sourcing post-COVID and natural disasters, automakers remain heavily reliant on just-in-time logistics and face high switching costs for alternative chips.
