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.