Bosch warns: Auto industry is at risk because of Nexperia!

Bosch warns: Auto industry is at risk because of Nexperia!

The conflict between the USA and China has now also reached the automotive industry in Europe. With the government of the Netherlands taking control of the Dutch chip company Nexperia, the situation is becoming precarious for many automotive suppliers. Around 10% of the global semiconductor products market is affected, amid an already fragile supply environment.

How AlJazeera reports, China has now banned the export of Nexperia's finished products used in auto parts. This decision follows the Dutch government's control over the company, which previously suffered from serious governance deficiencies. The move is part of a larger picture in which the US is raising national security concerns and adding Nexperia to a list of companies subject to strict export restrictions.

Impact on the automotive industry

This poses significant risks for suppliers like Bosch. Bosch, which has around 1,400 employees at its Salzgitter plant, has already announced that there could be short-time work if the situation does not improve quickly. They are forced to look for alternative suppliers because Nexperia chips are essential to the automotive industry. Despite the current challenges, Volkswagen has secured production in Germany for the coming working week, while BMW and Mercedes are also reporting that their supply chains are taking a hit.

The reports show that the situation is serious: around 80% of the final products produced by Nexperia are affected by these export restrictions. Loud daily news Both ACEA, the European auto association, and the US auto lobby are concerned about possible production losses and are demanding quick solutions from governments. The worrying side of it all is that there will only be enough chips left for a few weeks, which could lead to massive production stops.

Political dimension and future outlook

The Dutch intervention comes at a time when tensions between the US and China continue to rise. Nexperia's CEO was ousted under a court order after U.S. residents said he needed to be replaced to avoid a spot on a list that flags companies deemed threats to national security. A Chinese Foreign Ministry spokesman recently called for economic issues not to be politicized, which only increases additional tensions between nations.

Calls for dialogue are growing as Nexperia takes legal action against the Dutch takeover while hoping for an improvement in the situation. The auto industry has already suffered from a semiconductor shortage during the corona pandemic in the past. A quick solution seems essential to ensure the continued existence of cross-industry supply chains.

In summary, it remains to be seen how the situation will develop and what steps will be taken by governments to resolve the current trade dispute. If a rethink is not made soon, this crisis could quickly become a serious threat to the entire automotive industry.