Dutch officials invoked a Cold War-era law last month to effectively take control of the Netherlands-based but Chinese-owned Nexperia, citing national security concerns, as the sector increasingly becomes a focus of geopolitical tensions.
The company then said Beijing had banned it from exporting certain goods from China since early October -- potentially a serious problem for carmakers as its chips are widely used in vehicles' electronic control units.
Volkswagen, Europe's biggest carmaker, confirmed some Nexperia components are used in its vehicles but said production was "currently unaffected".
"However given the dynamic nature of the situation, an impact on production cannot be ruled out in the short term," added the company, whose 10 brands range from Audi to Seat and Skoda, without giving further details.
It said production of the VW Golf and Tiguan would be suspended on Friday as part of planned measures and would resume the following week, though it denied earlier media reports that this was linked to the chip shortage.
Germany's Bild newspaper reported that the chip shortage would lead to the suspension of production at key VW factories from next week.
However, a spokesman for the company's Zwickau plant told AFP this was "incorrect".
Talks were due to take place later Wednesday between auto industry leaders and the German economy ministry on the fallout from the chip shortages, industry sources confirmed to AFP.
Hildegard Mueller, president of Germany's VDA auto industry association, had warned Tuesday that the fallout "could lead to significant production restrictions in the near future, and possibly even to production stoppages".
"The current focus should be on finding quick and pragmatic solutions," she said.
VW's share price tumbled over two percent in Frankfurt on Wednesday after reports emerged of the potential stoppages at its plants.
Stefan Bratzel, an auto industry expert at the Center of Automotive Management in Germany, told AFP that carmakers were making "attempts to switch to other suppliers".
"But it is not easy to find other suppliers at short notice," he said.
Nexperia chip crisis could spread: German industry group
Frankfurt, Germany (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.
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