"Major car, van, truck and bus manufacturers are warning that the Dutch government placing semiconductor biz Nexperia under special administrative measures could result in a shortage of automotive chips. The European Automobile Manufacturers' Association ( ACEA) - comprised of 15 members including BMW Group, DAF Trucks, Fiat Chrysler, Ford, Honda, Hyundai, Jaguar Land Rover and Renault - voiced concern about significant disruption unless the situation can be resolved quickly."
"According to Nexperia, China's Ministry of Commerce (MOC) issued an export control notice prohibiting the company's Chinese subsidiary and its subcontractors from shipping abroad specific finished components and sub-assemblies manufactured in the Middle Kingdom. Nexperia is a key high-volume supplier of parts used in the electronic control units of vehicles produced by many manufacturers. Its main semiconductor fabrication plant is in Hamburg, Germany, but many of the chips produced there are sent to China to be packaged and assembled into finished products."
"The move by China's MOC is in retaliation to the Netherlands' Ministry of Economic Affairs' decision on Monday to invoke the Goods Availability Act over what it described as governance shortcomings at Nexperia, which is owned by China's Wingtech Technology. The Dutch Enterprise Chamber suspended Nexperia's Chinese CEO, Zhang Xuezheng, and prohibited the company from relocating company assets, making changes to personnel, or taking other decisions without explicit permission from the Dutch government for a period of a year."
The Dutch government invoked the Goods Availability Act over governance shortcomings at Nexperia, suspending its Chinese CEO and restricting asset and personnel changes for a year. China's Ministry of Commerce issued an export control notice barring the company's Chinese subsidiary and subcontractors from shipping specified finished components and sub-assemblies abroad. Nexperia's main fabrication plant is in Hamburg, but many wafers are sent to China for packaging and assembly into finished chips. Major vehicle manufacturers and trade groups warn that these measures could trigger shortages of automotive semiconductors and significant production disruption. Nexperia is engaging Chinese authorities and other governments to seek exemptions and mitigate impacts.
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