Copyright SlashGear
In this day and age, chips and the semiconductors they're made from are important in virtually all facets of life. From computers to vehicles, these materials are vital to modern technology, making them essential to the companies that rely on them to produce their wares. This much was proven a few years ago, when several car companies were severely impacted by a global semiconductor shortage. Now, it appears that a similarly tumultuous and automaker-unfriendly period could be on the horizon yet again as a dispute between two nations begins to heat up. As reported by Reuters in October 2025, the Chinese and Dutch governments are currently at odds after the latter took control of the Chinese-owned, Netherlands-based chip manufacturer Nexperia. This action was taken as a precaution against Nexperia's parent company, Wingtech, with the Dutch government seeking to lock down Nexperia and protect Europe's technological knowledge and capabilities — all while denying that pressure from the United States influenced the move. In response, the Chinese Ministry of Commerce sent out an export control notice, which prevents Nexperia China from exporting "specific finished components and sub-assemblies manufactured in China," to quote a Nexperia press release. This includes the chips that many automakers rely on; thus, a global shortage appears imminent. This fact isn't lost on automakers around the world. Numerous of them have spoken on the impact this rift between China and the Netherlands is likely to have on the industry in short order. As the dispute between China and the Netherlands has developed, and it has become clear how export restrictions on Nexperia could impact global semiconductor access, automakers have released statements on the matter. The United States' Alliance for Automotive Innovation, which counts General Motors — an owner of several brands in its own right — Toyota, Ford, Volkswagen, and Hyundai among its members, said that the lack of chips could be detrimental to the automotive industry and others. "It's going to disrupt auto production in the U.S. and many other countries and have a spillover effect in other industries," the group's CEO, John Bozzella, told Reuters. Some have claimed that the chip shortage could impact production as soon as November 2025. The Japan Automobile Manufacturers Association, whose members include Nissan, Toyota, Honda, and Mazda, also warned of the incoming harm. In a statement shared with The Guardian, the association said that "The chips manufactured by the affected manufacturers are important parts used in electronic control units ... and we recognize that this incident will have a serious impact on the global production of our member companies." The German Association of Automotive Industry, the VDA, went as far as to say that this situation could soon halt production entirely. Other automakers have made similar statements, with the common theme being that they all hope the conflict is settled sooner rather than later for the sake of the industry and all connected to it. At the time of this writing, Nexperia is attempting to find legal workarounds to continue business as usual and prevent tragedy from striking the automotive industry. One can only hope that it's successful, or that China and the Netherlands can come to an agreement swiftly.
