A dispute involving China’s Nexperia chipmaker could disrupt the global semiconductor supply for automakers, putting new car production at risk as early as next month. Major US carmakers such as GM and Stellantis are closely monitoring the situation.
The Dutch government has taken control of Nexperia over concerns about technology transfer to its Chinese parent company, Wingtech. Reuters reports that most of Nexperia’s chips are made in Europe but packaged in China, making it difficult for both sides to find alternative partners quickly.
Auto industry groups and automakers urge a quick resolution to avoid significant economic disruption, similar to the 2021 chip shortage. GM CEO Mary Barra said the company is working around the clock with its supply chain partners to minimize disruptions.
The Alliance for Automotive Innovation warns that disruptions in the automotive supply chain can have far-reaching effects on industries worldwide. They are urging President Donald Trump’s administration for assistance if needed.
A similar chip crisis four years ago brought US vehicle production to a standstill, causing limited car options and long wait times for new cars. The 2021 shortage was caused by increased demand for personal electronics during the COVID-19 pandemic.
Source: https://eu.usatoday.com/story/cars/news/2025/10/31/automaker-disruptions-chips-crisis/87012992007