Nissan Mercedes Warn Chip Supply Crisis Amid China Netherlands Nexperia Dispute

A worsening semiconductor shortage is threatening the global automotive industry due to a trade and intellectual property dispute between the Netherlands and China centered on Dutch chipmaker Nexperia, whose chips are widely used in car components. The Dutch government seized control of Nexperia in September over concerns about technology transfer to its Chinese parent company, Wingtech, which the U.S. has flagged as a national security risk, prompting China to ban exports of Nexperia chips from its factories. Major automakers Nissan and Mercedes-Benz have expressed serious concerns; Nissan's chip supply is only secure through early November, while Mercedes-Benz is urgently seeking alternative suppliers worldwide amid uncertainty about the crisis's resolution. The shortage is already affecting production globally, with Brazil warning that its automotive manufacturing could halt within weeks if supplies do not improve. This dispute underscores the vulnerability of modern supply chains to geopolitical tensions and may accelerate moves toward reshoring and supply chain diversification in the auto sector and beyond. Industry leaders acknowledge the challenge's scale and the difficulty in forecasting how long the disruption will last, highlighting the broader impact of escalating trade frictions between China and Western countries.