Semiconductor shortage: Nissan and Mercedes sound the alarm on Nexperia

On Wednesday, Nissan and Mercedes-Benz warned of a worsening global semiconductor shortage, a direct consequence of the standoff between China and the Netherlands over the Dutch chip manufacturer Nexperia.

This commercial and technological dispute, centered on intellectual property, adds to the difficulties already faced by the automotive industry, which is grappling with US tariffs and Chinese restrictions on rare earths. It once again highlights the vulnerability of manufacturers to the growing tensions between China and the West.

Since September, Beijing has banned the export of Nexperia's finished products manufactured in China. This measure follows the Dutch government's decision to take control of the group, citing the risk of technology transfers to its Chinese parent company, Wingtech, a company identified by the US as a potential threat to national security.

"This is not a small problem, it's a big problem," said Guillaume Cartier, Nissan's Chief Performance Officer, on the sidelines of the Japan Mobility Show in Tokyo. "At the moment, we don't have complete visibility." The manufacturer claims to have enough supplies until the first week of November. But beyond tier 1 suppliers, it is becoming difficult to track the situation further down the supply chain, he said.

Mercedes-Benz is now looking for alternatives worldwide, said its CEO Ola Kaellenius, while acknowledging the uncertainty surrounding the situation.

In Brazil, a major automotive production center, some factories could be forced to shut down their lines within two to three weeks if the crisis persists, a local official warned on Tuesday. The Brazilian government has begun discussions with the Chinese authorities in an attempt to resolve the situation.

Why did the Netherlands "seize" Nexperia?

In September, Dutch authorities decided to take control of Nexperia, a chip manufacturer, amid suspicions that it was dismantling its European operations for the benefit of China. According to corroborating sources, former CEO Zhang Xuezheng, also founder of Chinese parent company Wingtech, planned to cut 40% of the workforce in Europe and close an R&D center in Munich. Before his suspension by the Dutch courts on October 1, Zhang had reportedly already transferred trade secrets from the British factory in Manchester to China, as well as equipment from the Hamburg site.

The case sparked a standoff between The Hague and Beijing, causing concern among several international car manufacturers, who faced the risk of a chip shortage. Although the components produced by Nexperia are simple, they are essential to the electronics used in vehicles. In response to the Dutch decision, China blocked Nexperia's exports from its local factories on October 4. The Dutch government now hopes to reach a compromise with Beijing to restore joint governance of the company.

Nexperia, a company little known outside the automotive industry, was a major topic of discussion during the sector's quarterly results. Zonebourse identified 16 conference calls with analysts mentioning the Dutch company, involving players such as Forvia, OPMobility, CIE Automotive, Visteon, STMicroelectronics, Ford Motor, Porsche AG, and NXP Semiconductors.