Copyright brisbanetimes

The European and US auto industries are bracing themselves for a disruption to the supply chains of the low-value semiconductors vital to modern cars, a threat similar to the chip shortages that caused chaos for the sector and led to long lead times for deliveries during the pandemic. Their predicament relates to the seizure of control of a small Dutch semiconductor manufacturer by the Dutch government earlier this month, which has frozen supply of the myriad microchips used in electronic systems in cars that control everything from lights, airbags, locks and windows. Carmakers are now scrambling to find alternate suppliers after the Dutch government gained court approval to take control of Nexperia, the Dutch subsidiary of a Chinese company, Wingtech. Wingtech acquired Nexperia in 2019 from a group of Chinese investors who had bought it in 2017. Last year the US put Wingtech on its trade black-list, claiming it was helping China to circumvent US restrictions on China’s access to advanced semiconductor manufacturing technology.