Car industry Chip crisis: Nexperia bottleneck could halt German car factories
German car manufacturers may be facing a new semiconductor crisis. The German Association of the Automotive Industry (VDA) warns that production could soon be halted due to problems at Dutch chip manufacturer Nexperia.
21.10.2025, 17:13
SDA
"The situation could lead to considerable production restrictions in the near future, possibly even to production stops, if the interruption in the supply of Nexperia chips cannot be resolved in the short term," said VDA President Hildegard Müller.
What is the situation at the supplier?
There are supply problems at Nexperia after the Dutch government took control of the company, which was previously managed by a Chinese parent company. The company then informed car manufacturers and suppliers "that the company can no longer fully guarantee the supply of its chips to the automotive supply chain", according to the VDA boss.
According to the German association, Nexperia is an important supplier whose semiconductors are frequently used in electronic control units of vehicle electronics systems. "The VDA has since been in contact with the affected companies, the industry, the German government and the EU Commission. The current focus should be on finding quick and pragmatic solutions," says Müller. Nexperia produces in Hamburg, among other places, but is reportedly dependent on supplies from China, which have now failed to materialize.
