The European Automobile Manufacturers Association (ACEA) warned on Wednesday of the threat of production stoppages due to a shortage of basic chips that are critically important for automotive manufacturing.
The crisis situation has arisen due to the political conflict between the Netherlands and China surrounding the company Nexperia.
Nexperia, which produces basic chips for the automotive industry and electronics, is headquartered in Nijmegen in the eastern Netherlands, but the company itself is owned by China's Wingtech Technology. Nexperia is one of the largest manufacturers of diodes and transistors in the world.
On September 30, the Dutch authorities placed it under state control due to concerns over technology leakage, and in response, China imposed export restrictions on chips.
As a result, automakers worldwide, including in Europe, are facing a severe chip shortage.
"The industry is operating thanks to reserve stocks, but they are rapidly depleting. According to a survey of our members this week, some are already expecting assembly line shutdowns in the near future. Alternative suppliers exist; however, it will take months for them to ramp up additional capacity and compensate for the shortage. The automotive industry does not have that much time – the consequences of the shortage will be felt very soon," said ACEA in a statement.
The CEO of ACEA urged all parties in the conflict to intensify efforts to find a diplomatic solution.
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