According to a Bloomberg report published on 21 October 2025, the European automotive industry is preparing for production disruptions within days following new Chinese export restrictions on semiconductors manufactured by Nexperia. Stockpiles are expected to run out within a week for major suppliers, with the entire sector likely to be affected in ten to twenty days.
Beijing’s decision to block exports from Nexperia, the Dutch company controlled by China’s Wingtech Technology, came after the Dutch government took control of the firm under emergency laws to safeguard strategic production. The move has further escalated trade tensions between China, the United States and the European Union, already strained by Chinese limits on exports of rare earths and battery materials for electric vehicles.
Hildegard Müller, president of the German automotive industry association VDA, warned that the situation could lead to “severe production constraints, up to and including complete assembly line shutdowns”. European carmakers and suppliers have already launched crisis talks with national and EU authorities to design continuity plans, though they acknowledge that qualifying alternative components could take months.
Bloomberg reports that Volkswagen has set up a dedicated task force to assess its supply chain exposure. Bosch, the world’s largest automotive supplier, confirmed it is in close contact with Nexperia and other industry partners to mitigate the impact of the blockade. “Like other Nexperia customers,” a spokesperson told the news agency, “we face a major challenge and hope for a swift resolution to ease the current supply bottlenecks.”
Mercedes-Benz said it has short-term stockpiles but considers the situation unstable and difficult to predict. The company, together with its suppliers, is working to prevent disruptions in the supply of semiconductors for electronic control units and safety systems. According to Bloomberg, US component manufacturers may also face indirect repercussions, as many subcontractors rely on chips made by Nexperia. The sector, caught off guard by the Dutch government’s decision under US pressure, now faces another supply chain crisis reminiscent of 2021.
Germany’s Infineon Technologies has reportedly received numerous requests from carmakers to replace the affected components, but ramping up production will take time. Meanwhile, European manufacturers, Chinese authorities and the European Commission have opened channels of dialogue to clarify the scope of the restrictions and attempt to limit their impact on production lines.
