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Automaker group warns Nexperia chip supply issue could quickly disrupt US production
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Automaker group warns Nexperia chip supply issue could quickly disrupt US production
Oct 16, 2025 5:31 PM

WASHINGTON, Oct 16 (Reuters) - A group representing

major automakers warned late on Thursday that a chip disruption

stemming from a dispute between China and the Dutch government

could quickly impact U.S. auto production.

Carmakers and their suppliers received notice from chipmaker

Nexperia last week that it could no longer guarantee delivery of

its chips, said ACEA, the European Union's auto association,

which also said manufacturing could be significantly disrupted.

In the United States, the Alliance for Automotive

Innovation, which represents General Motors ( GM ), Toyota ( TM )

, Ford, Volkswagen, Hyundai,

and nearly all other major automakers, urged a quick resolution.

"If the shipment of automotive chips doesn't resume -

quickly - it's going to disrupt auto production in the U.S. and

many other countries and have a spillover effect in other

industries," said the group's CEO John Bozzella. "It's that

significant."

Some automakers told Reuters that U.S. auto plants could

be affected as soon as next month. They declined to be named due

to the sensitivity of the issue.

The chips made by Nexperia are crucial to production of

U.S. parts and vehicles.

The Dutch government announced on Sunday that it had as

of September 30 taken control of Chinese-owned computer

chipmaker Nexperia, citing worries about the possible transfer

of technology to Nexperia's Chinese parent company, Wingtech.

Court documents showed the Dutch government's move came

after months of rising U.S. pressure on the company. Nexperia

was at risk of being impacted by a new U.S. rule that extends

export control restrictions to companies at least 50% owned by

one or more entities on the U.S. entity list.

Washington put Wingtech, which has 100%

ownership of Nexperia, on the U.S. list in late December.

The Chinese commerce ministry issued on October 4 an

export control notice prohibiting Nexperia China and its

subcontractors from exporting specific finished components and

sub-assemblies manufactured in China, according to a statement

Nexperia published on Tuesday.

Volkswagen and BMW both said production in Europe had not

yet been impacted by the issues but that they were working to

identify potential supply risks.

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