HomeTrending NewsVolkswagen faces chip crisis after EU state seizes Chinese factory – Image

Volkswagen faces chip crisis after EU state seizes Chinese factory – Image

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Dutch authorities took control of semiconductor producer Nexperia in September under pressure from the United States.

Germany’s largest carmaker, Volkswagen, could halt production at a key plant due to a semiconductor shortage caused by the Netherlands’ seizure of a Chinese-owned chipmaker, Bild reported, citing unnamed sources.

The Dutch government took control of Nexperia’s factory in Nijmegen late last month, citing security and intellectual property concerns. The New York Times reported last week, after reviewing documents from an Amsterdam court, that the move had been made after pressure from US officials. Nexperia’s parent company, Wingtech, was blacklisted by Washington in 2024 as part of an ongoing trade war with China.

Beijing responded in early October by banning Nexperia from exporting finished chips from China, which are widely used in the electronic control units of VW vehicles.

Bild reported on Wednesday that Volkswagen, which also owns the Skoda, Seat, Audi, Porsche, Lamborghini and Bentley brands, does not currently appear to have an alternative to Nexperia chips.



Volkswagen faces chip crisis after EU state seizes Chinese factory – Image

Company sources told the newspaper that, due to a lack of semiconductors, it plans to stop production at its Wolfsburg plant starting next Wednesday. Volkswagen Golf models will be affected first, followed by other vehicles, they said.

If the situation does not improve, work could also be carried out at Volkswagen facilities in Emden, Hannover, Zwickau and elsewhere, a person familiar with the matter said.

According to the report, the automaker has begun talks with German authorities about a state-backed work-hour reduction plan for tens of thousands of its employees.

Bild warned that the chip crisis could also affect other car manufacturers in the country. Representatives from BMW and Mercedes told the newspaper they were analyzing the situation. The German car industry has already been suffering due to high energy costs as a result of EU sanctions on Russia over the Ukraine conflict and increased US tariffs.

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A spokesman for the Volkswagen plant in Zwickau told AFP that the Bild report was “incorrect.” However, according to an internal letter seen by the media, the company acknowledged that “A short-term impact on production cannot be ruled out” due to the shortage of semiconductors.

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