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Automakers may halt output in Brazil if chips crisis persists, says government official
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Automakers may halt output in Brazil if chips crisis persists, says government official
Oct 28, 2025 4:14 PM

BRASILIA, Oct 28 (Reuters) - Some automakers may halt

operations in Brazil within two to three weeks if the global

chips supply crisis continues, an official said on Tuesday,

adding the Brazilian government is contacting Chinese

authorities to find a solution.

Uallace Moreira, a secretary in Brazil's Development,

Industry, Trade and Services Ministry, did not specify which

automakers in Latin America's largest economy could be hit first

by the global crisis, triggered by a stand-off between China and

the Netherlands over chipmaker Nexperia.

"If there is no solution in this short period of time, in

two or three weeks, there may be a shutdown for some

automakers," Moreira told journalists after a meeting with the

president of Brazilian automakers association Anfavea.

Brazil's Vice President Geraldo Alckmin, who also heads the

ministry, attended the meeting as well.

In September, the Dutch government took control of Nexperia,

which manufactures chips for cars and consumer electronics, as

it cited worries about the possible transfer of technology to

the firm's Chinese parent company, Wingtech.

In response, the Chinese government blocked Nexperia from

exporting its products from China. While most of the company's

chips are produced in Europe, around 70% are packaged in China

before distribution.

Moreira noted Alckmin has already contacted both the

Brazilian ambassador to China and the Chinese ambassador to

Brazil to initiate discussions about the matter as the local

private sector requests dialogue between the parties.

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