The situation is raising concerns among vehicle manufacturers, who rely on these devices for essential functions.
A little-known company outside the technology sector could become the new epicenter of a global crisis. Nexperiaa Dutch manufacturer of key semiconductors for automotive industryfaces a trade dispute that could interrupt car production in several countries and put pressure on prices again, already at record levels.
The conflict has its origin in the rising tensions between the United States and China. Last December, the US Department of Commerce included Nexperia’s parent company, the Chinese Wingtech Technologieson a list of companies subject to restrictions. Later, in October, China responded with a ban that prevents Nexperia and its suppliers from exporting certain components manufactured in its territory. As a consequence, the government of the netherlands assumed control of the company.
Tension between the US and China over a chip manufacturer could slow down car production around the world
The situation is raising concerns among automakers, who rely on these chips for essential functions: from braking and fuel systems to electronic seat adjustments. A prolonged interruption could recall the shortage of semiconductors that, after the pandemic, forced the temporary closure of plants and skyrocketed the prices of new and used vehicles, according to the CNN report.
Nexperia produces around 40% of automotive chips of the segment that includes transistors and diodes. According to its website, it offers more than 6,000 products destined for the sector and sends 110,000 million units per yearwith operations in Europe, Asia and the United States.
chip-manufacturers
Although the company claimed to be working on contingency plansmanufacturers’ associations are pessimistic. “If chip shipments are not restored soon, global automotive production will be severely affected,” he warned. John BozzellaCEO of the Alliance for Automotive Innovationwhich brings together the main automotive companies.
From Europe, the Automobile Manufacturers Association (ACEA) warned that replacing Nexperia components could take monthswhile current supplies would only last a few weeks. “We are facing an alarming situation that requires quick and coordinated solutions,” said its director, Sigrid de Vries.
Consulting analysts TechInsights They estimate that any prolonged interruption could generate a domino effect similar to that of 2021, when the lack of microchips sharply reduced the supply of new cars and raised the average price in the United States above the US$50,000.
Source: Ambito
I’m a recent graduate of the University of Missouri with a degree in journalism. I started working as a news reporter for 24 Hours World about two years ago, and I’ve been writing articles ever since. My main focus is automotive news, but I’ve also written about politics, lifestyle, and entertainment.
