EU authorities have issued a warning, stating that even though China has resumed chip exports, European car manufacturers and other industrial entities are still grappling with acute chip shortages. This predicament could bring global production lines to a standstill within a matter of weeks. The fundamental automotive chips manufactured by Nexperia Semiconductor play a pivotal role in automotive electronic systems, overseeing the operation of crucial components like lighting, airbags, car locks, and windows. Once these core components are fabricated in the UK, the Netherlands, and Germany, they are dispatched to Chinese subsidiaries for assembly before being distributed to the global market. Nevertheless, Nexperia (Netherlands) persists in its refusal to supply wafers to Nexperia (China), causing the Chinese factory's inventory to dwindle. The current stockpile is projected to be exhausted by early to mid-December. In response, Nexperia (China) is diligently exploring alternative wafer suppliers and might consider reducing production to prevent extensive supply chain disruptions.
