Automotive News Europe — 2025-10-23
Automotive Industry
A Volkswagen executive said the automaker has secured access to semiconductors from an alternative supplier to avert potential production disruptions from China’s ban on exports of semiconductors produced by Nexperia.
VW is facing production stoppages at its main Wolfsburg plant in Germany due to the supply dispute that is spreading throughout the industry including to Japanese automakers.
“We have an alternative supplier that could compensate for the loss of supply of Nexperia semiconductors,” the head of VW brand production, Christian Vollmer, told the German business paper Handelsblatt.
The affected Nexperia components are not high-end chips but low-cost, mass-produced semiconductors. They operate essential functions such as switches and steering wheel controls. Industry insiders say that several other manufacturers could produce similar parts.
VW typically does not purchase Nexperia chips directly but receives them through its suppliers. The automaker’s precise role in the negotiations remains unclear, though industry observers say VW could be using its market influence to secure alternative supplies on behalf of smaller suppliers.
If VW does find another source, it remains uncertain how quickly new chips could be delivered to affected suppliers and whether they would be immediately compatible with existing components used in VW vehicles.
VW is pausing production of the Golf and Tiguan models on Oct. 24 for planned maintenance. There remains uncertainty and output could remain suspended into next week and beyond.
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VW has been searching for alternative chip sources for several weeks.
A company spokesperson said the automaker is reviewing alternative procurement options to minimize potential impacts on the supply chain and is in close contact with potential suppliers.
The supply disruption began after the Dutch government seized control over Nijmegen-based Nexperia, which is a subsidiary of China’s Wingtech, citing intellectual property concerns. The rift was precipitated by the U.S. threatening to put Nexperia on a no-trade list due to its association with Wingtech.
It remains unclear when or if Nexperia will be able to resume deliveries. The company’s Chinese subsidiary recently declared itself independent, escalating tensions further.
Chip shortages are likely to hit key European automotive suppliers within a week, while the impact could spread across the entire sector within 10 to 20 days, Bloomberg reported, citing people familiar with the matter.
The German government is concerned about the dispute and is in “intensive discussions” about the implications of the Nexperia, a spokesman for Chancellor Friedrich Merz’s administration said Oct. 22 at a press briefing in Berlin.