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Nissan and Mercedes sound alarm over chip supply crisis
Oct 29, 2025 3:23 AM

By Aditi Shah, Daniel Leussink and Rachel More

TOKYO, Oct 29 (Reuters) - Nissan Motor ( NSANF ) and

Mercedes-Benz on Wednesday became the latest global

automakers to sound the alarm about a deepening semiconductor

supply crunch, highlighting the growing fallout from a tussle

between the Netherlands and China over

Dutch chipmaker Nexperia.

A trade and intellectual property stand-off between China

and the Dutch government over Nexperia, whose chips are widely

used in automotive components, is the latest challenge for an

industry already grappling with U.S. tariffs and Chinese curbs

on rare earths.

It is also a reminder of automakers' vulnerability in the

face of the trade frictions between China and the West.

China has banned exports of Nexperia's finished products

from its Chinese plants after the Dutch government in September

seized control over the chipmaker, citing concern about the

possible transfer of technology to Nexperia's Chinese

parent, Wingtech .

The Chinese company has been flagged by the United States as

a possible national security risk.

"It's not a small issue, it's a big issue," Nissan's ( NSANF ) Chief

Performance Officer Guillaume Cartier told reporters when asked

about the impact on chip supply.

"For the moment we don't have full visibility."

Cartier, in a group interview at the Japan Mobility Show in

Tokyo, said the automaker was "okay to the first week of

November" in terms of chip supply.

While it was possible to have a grasp of the state of supply

at its biggest suppliers - so-called Tier 1 - it became more

difficult further down the supply chain, he said.

German carmaker Mercedes-Benz is now scouring around the

world for alternative supply, CEO Ola Kaellenius said on

Wednesday.

Kaellenius, too, said it was hard to see how the situation

would play out.

In Brazil, a major automaking hub, some manufacturers may

have to halt operations within two to three weeks if the crisis

continues, an official said on Tuesday.

The Brazilian government is contacting Chinese authorities

to find a solution, the official said.

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