Due to the chip interruption of the Dutch semiconductor company Nexperia, more than 3,000 employees of the German automotive parts supplier Bosch have been forced to stop working.
Currently, China and the Netherlands are vying for control of Nexperia. The Dutch government sent a high-level delegation to Beijing this week to seek negotiations for a solution that can be accepted by both sides.
Reuters reported that Bosch stated on Tuesday (November 18) that its three production sites in Ansbach and Salzgitter, Germany, as well as Braga, Portugal, have been affected by the situation.
Bosch emphasized, “We are prioritizing resources to serve customers, avoiding impacts or minimizing them as much as possible.”
Nexperia, headquartered in the Netherlands, was acquired by a Chinese tech company. While Nexperia’s chip technology is not cutting-edge, it is widely used in automotive electronics and other consumer products.
Concerned about the illegal transfer of technology to China, the Dutch government took over the Chinese-owned company in September. Subsequently, Beijing announced restrictions on the export of chip products from Nexperia’s factories in China, particularly the main packaging facility.
This has forced major European suppliers like Bosch, Aumovio, and ZF Friedrichshafen to urgently seek alternative suppliers.
Despite some export exemptions granted by the Chinese Ministry of Commerce, Nexperia’s chip supply chain has not fully recovered.
With production lines facing disruptions, Bosch had to place some employees at the three affected factories on temporary leave.
A spokesperson for Bosch mentioned that approximately 300 to 400 employees at the Salzgitter plant in Germany have been put on paid leave supported by the government, out of a total workforce of around 1,300. In Ansbach, approximately 650 employees have been affected out of a total of 2,500. In Braga, Portugal, around 2,500 employees have faced temporary adjusted working hours or leave out of a total of 3,300 employees.
ZF Friedrichshafen stated that chip inventory could sustain until mid-next week and currently no leave is required, but future measures are not ruled out.
Marcus Bollig, Executive Director of the German Association of the Automotive Industry (VDA), told Reuters that the Nexperia chip supply issue has not been fully resolved yet, and there is a possibility of further disruptions in the supply chain in the coming weeks.
This chip shortage has impacted the global automotive industry chain. Nissan in Japan is expected to reduce production by 1,400 vehicles next week, while Honda stated that production capacity in North America will gradually return to normal.
The Dutch Minister of Economy, Vincent Karremans, hinted last week that he would not make any concessions until the first batch of Nexperia chips arrives in Europe.
He told The Guardian, “Once the supply is restored, and we are confident that the supply can continue, then… we will take the necessary steps required by the Dutch government to address this issue.”
Karremans hopes that this incident will “sound the alarm” and make people aware of the dangers of relying too heavily on a single country for critical technology or raw materials.
The Dutch minister pointed out that if Nexperia’s wafer production line is allowed to be transferred to China, then “the interdependence between Europe and China will turn into complete dependence… This would be extremely dangerous for Europe.”