Bosch shares fall 3.5% on flagging supply chain concerns from Nexperia export curbs

Bosch shares fall 3.5% on flagging supply chain concerns from Nexperia export curbs

Shares of Bosch Ltd fell 3.5% on October 29 to Rs 37,675 apiece as the automotive parts supplier said it may see supply chain disruptions due to "ongoing situation" surrounding private Dutch chipmaker Nexperia, which supplies electronic components to company.

Last month, Netherlands seized control of Nexperia citing lapses in governance, after which Beijing blocked exports of Nexperia's products out of China

Around 70% of Nexperia's chips are packaged in China.

At 1:30 pm on October 29, Bosch shares on NSE were trading 3.6% lower at Rs 37,135 apiece. The 52-week high of the stock is Rs 41,945 and 52-week low is Rs 25,921. The market capitalisation of the stock is Rs 1.1 lakh crore.

Bosch said current situation "presents significant challenges", adding that if there's no improvement in export control curbs, "temporary production adjustments" in some of company's manufacturing plants cannot be ruled out.

"As a global company operating in India, we are inherently reliant on a robust and

interconnected global supply chain, including for electronic components. Changes in foreign trade policy and geopolitical developments, such as those affecting Nexperia, significantly impact our business. The current situation presents us with significant challenges. We are currently working to serve our customers and to avoid or minimize production restrictions. However, if there is no improvement of the export control restrictions, temporary production adjustments in selected Bosch Limited’s manufacturing plants cannot be ruled out," said Bosch in a stock exchange filing.