Nexperia shock explained: Why a small chip maker can stall big auto brands

Nexperia chip halt hits automakers

Nexperia, a Netherlands-based chip maker whose parts sit in everything from headlights to engine control units, has stopped shipping product after the Dutch government seized control of the company from Chinese owner Wingtech. The company notified customers and declared a “force majeure,” citing extraordinary circumstances. On paper Nexperia isn’t the biggest automotive chip name, but it dominates a humble category—discrete transistors and diodes—where it holds roughly 40% share. In an industry where one missing five-cent component can stall a $50,000 vehicle, that concentration is a real production risk, the Wall Street Journal reported.

The Dutch decision aimed to safeguard “technological knowledge and capabilities.” Beijing then ordered Wingtech to suspend Nexperia exports from China, where about 80% of its devices are packaged and tested before they ship to automakers. That double squeeze—state control in Europe and export restrictions in China—has left Nexperia’s European and Chinese factories unable to resume normal outbound flows. The company says day-to-day operations can continue, but customers are not receiving parts.

Nexperia parts flow into vehicles made by BMW, Mercedes-Benz and Toyota, among others, and sit deep inside Tier-1 suppliers’ modules. General Motors has asked suppliers to disclose their Nexperia usage and volumes. Volkswagen, BMW, Mercedes-Benz and Stellantis are assessing exposure with their supply bases. Toyota initially suspected delays were linked to China’s tighter rare-earth controls before tracing disruptions back to Nexperia; it is now studying alternatives.

Automakers only recently worked through the pandemic-era semiconductor shortage. Many diversified sourcing, but basic discretes remained sticky: once a part is qualified on a production line, switching can take weeks for validation and quality sign-off even if a second source exists. Firms that dual-sourced may be able to backfill; those single-sourced on Nexperia will face a longer requalification tail. The lesson resurfacing for procurement chiefs: supply chains are still fragile at the low end of the chip stack.

The Dutch state acted after a U.S. warning that Nexperia could be swept onto an American trade blacklist unless it changed leadership, according to a Dutch court filing. China responded not only with export suspensions affecting Nexperia but also with broader trade salvos in recent weeks amid escalating tariff threats from Washington. Industry groups and companies—including Volkswagen, BMW, Bosch and Aumovio—have asked Chinese authorities to lift the Nexperia export hold and help defuse the standoff. Wingtech, meanwhile, is preparing to sue the Dutch government and Nexperia’s Western executives.

Automakers and Tier-1s are mapping bills of material to locate every Nexperia line item and lining up alternates. For now, assembly plants are still running, but the window is measured in weeks, not months, if shipments don’t resume. Even a short disruption in transistors and diodes can ripple quickly through electronic control units, lighting systems and power management boards. The longer the force majeure lasts, the greater the odds of selective line stoppages, pared-back trim content, or just-in-time expediting that dents margins.

This isn’t a repeat of 2021—yet. But it’s a fresh reminder that the smallest chips can be the biggest bottlenecks, and that industrial policy choices far from the factory floor can decide whether an automaker ships a car on time.