Nexperia Chip Crisis Disrupts Auto Supply Chains Once Again

London, Nov. 24, 2025 — A fresh semiconductor disruption tied to Nexperia’s China operations has once again shaken the global automotive industry, exposing lingering weaknesses in supply chains that manufacturers believed had been resolved after earlier shortages.

The crisis began when Dutch authorities intervened in Nexperia’s ownership structure, triggering a chain reaction that slowed exports from the company’s facility in Dongguan. The plant, which produces low-cost but essential chips used in vehicle systems, became the centre of geopolitical tension, leaving automakers scrambling for components that normally attract little attention.

Car manufacturers in Europe and Asia, including major Japanese brands, were forced to reduce output as stocks of basic semiconductors quickly ran out. Suppliers responsible for safety and control modules also faced delays, prompting shortened shifts and emergency production adjustments across the industry.

Industry analysts say the renewed disruption highlights a persistent vulnerability: inexpensive chips — often worth pennies — remain foundational to modern vehicles, yet their supply remains concentrated and sensitive to international politics. Despite public commitments to diversify after earlier shortages, many automakers continued to rely on single-source suppliers for low-end components.

The situation also underscored how quickly geopolitical decisions can ripple across manufacturing networks. Even after exports resumed, logistical friction and shifts in payment requirements created weeks of instability for buyers who rely on predictable chip flows to maintain tightly timed production cycles.

Experts warn that building true resilience will require significant investment, lengthy qualification processes for alternative suppliers, and a readiness to absorb higher costs. For carmakers already navigating electrification, automation and competitive pressure, the renewed chip shock serves as a reminder that the smallest components can create the biggest disruptions.