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Nexperia chip crisis could spread: German industry group
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Frankfurt, Germany, Oct 23 (AFP) Oct 23, 2025
Germany's machinery and equipment makers' association warned Thursday that a shortage of Nexperia semiconductors triggered by a stand-off between China and the Netherlands could hit sectors beyond the car industry.

The Dutch move to effectively take control of Netherlands-based but Chinese-owned chipmaker Nexperia has sparked fears of shortages, with Europe's auto industry particularly fearful of a hit to production.

Thilo Brueckner, electronics division chief at Germany's influential VDMA association, said that "like the car industry, the machine-making sector is definitely affected by the looming chip shortage".

Machinery that uses combustion engines, such as in the construction and agricultural industries, could in particular be affected, said Brueckner, whose association represents some 3,6000 companies.

Dutch officials invoked a Cold War-era law, citing national security concerns, when it took control of Nexperia last month, with the chip sector increasingly at the heart of geopolitical tensions.

The company then said Beijing had banned it from exporting certain goods from China. Carmakers are particularly worried as they make extensive use of Nexperia chips for onboard electronics.

German auto titan Volkswagen has warned that it cannot not rule out "short term" production stoppages, while emphasising that it is searching for alternative suppliers.

But industry experts say that substituting Nexperia chips is unlikely to be straight-forward, since they are embedded in products that have to be tested to meet strict automotive safety standards.

Analysts at Deutsche Bank said in a note Thursday that German car production could fall as much as a third in a "worst-case scenario", with a 10 percent fall more likely.

Germany's economy ministry held crisis talks late Wednesday with auto industry representatives to discuss the looming shortages.

Participants of the talks agreed that Berlin would seek to mediate between China, the Netherlands and the United States about Nexperia chip deliveries, the Handelsblatt newspaper reported.

Washington in December put Wingtech, the Chinese parent company of Nexperia, on an "entity list" of corporations viewed as acting contrary to the national security of the United States.

bur-vbw/sr/rl

Volkswagen

Deutsche Bank


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