Bosch Warns Global Auto Supply Chain Risks Amid Nexperia Trade Dispute

The ongoing trade dispute between the Netherlands and China over Dutch chipmaker Nexperia is causing significant concern in the global automotive supply chain, particularly for German auto parts supplier Bosch. Bosch has warned that if export restrictions are not eased, it may have to implement furloughs and reduce working hours at its Salzgitter plant, which produces motor control units for combustion and electric vehicles. The dispute escalated after Dutch authorities seized control of Nexperia, a company owned by Chinese firm Wingtech, which is subject to U.S. sanctions due to national security concerns. Major German car manufacturers like Volkswagen, BMW, and Mercedes are also bracing for potential disruptions as their supplier networks face strain from the chip shortage. Although companies like Bosch are exploring alternative suppliers such as Infineon, NXP, and Texas Instruments, switching is a complex and time-consuming process. This situation highlights the fragility of the automotive supply chain amid geopolitical tensions and could lead to wider production interruptions and inventory challenges across the industry.