VW Cautious Over Nexperia Chip Disruptions

Volkswagen has said it cannot rule out short-term production disruptions due to ongoing problems at Dutch chipmaker Nexperia. “At present, production remains unaffected. However, given the dynamic situation, an impact on production in the short term cannot be ruled out,” the company said in an internal statement obtained by the German Press Agency (dpa). A company spokesperson confirmed the information when asked for comment.

According to Bild newspaper, Volkswagen is already in contact with Germany’s Federal Employment Agency to discuss potential short-time work arrangements for several tens of thousands of employees. The company declined to comment on the report.

In its internal communications, Volkswagen merely stated that it is “in close contact with all relevant parties” in order to identify possible risks at an early stage and take necessary measures as required. The automaker said it would keep employees informed of further developments.

40 Percent Market Share

With an estimated 40 percent global market share, Nexperia is considered the world’s leading supplier of basic semiconductors such as diodes and transistors. The company also develops advanced chips for battery management systems. Its Chinese parent company, Wingtech, has been on a U.S. government blacklist since 2024 due to alleged national security concerns.

Supply bottlenecks have recently emerged after the Dutch government took control of Nexperia, which had previously been managed by Wingtech. In response, China halted exports of certain Nexperia products, including chips used in the automotive industry.

A Volkswagen spokesperson confirmed to Reuters that Nexperia semiconductors are used in components supplied to the carmaker by its vendors.

Germany’s Interior Ministry said it currently had no evidence of poor-quality products or espionage concerns related to Nexperia chips manufactured in China. According to information obtained by dpa, the Federal Ministry for Economic Affairs planned a conference call on the situation with representatives from the automotive and electronics industries later in the evening.

LC