Nexperia's supply chain crisis has impacted Japanese automakers, posing another challenge to the global automotive industry

On October 23rd, the Japan Automobile Manufacturers Association (JAMA) issued an emergency statement, announcing that it had received official notification from Dutch semiconductor giant Nexperia that it may be unable to guarantee the continued supply of critical automotive chips due to force majeure. This news quickly sent shockwaves through the global automotive industry chain, placing Japanese automakers like Toyota, Honda, and Nissan at risk, and further highlighting the vulnerability of the global automotive industry's supply chain.

The core of this crisis stems from the Dutch government's coercive intervention in Nexperia, a subsidiary of Chinese company Wingtech Technology. Following the Dutch government's takeover of Nexperia, China immediately implemented export controls, prohibiting the export of finished components produced at Nexperia's Chinese factories. As a key global supplier of automotive chips, Nexperia maintains approximately 70% of its packaging and testing capacity in its Dongguan, China, factory, while relying on overseas wafer manufacturing. To circumvent China's export restrictions, the Netherlands drastically reduced its wafer supply to China, leaving the Dongguan factory facing a dilemma of "orders but no raw materials." Although Nexperia denied a complete supply cut, insiders confirmed that wafer supply has significantly decreased, forcing factories to adjust their production schedules and implement a "four-day work, three-day rest" policy for some positions.

JAMA's statement explicitly stated that the chips supplied by Nexperia are essential for core components such as electronic control units (ECUs), and a supply disruption would directly halt production lines. As a global automotive manufacturing powerhouse, Japan's supply chain relies heavily on a stable supply of precision parts. While automakers like Toyota and Honda have not disclosed the specific models affected, industry analysts believe that if the supply crisis persists, Japanese automakers may face large-scale production cuts or even shutdowns, impacting the global automotive market.

Faced with the crisis, all parties launched an intensive response. Nexperia (China) issued a statement emphasizing its legal and compliant operations and pledging to fully ensure a stable supply chain. However, overseas control of technical data and wafer manufacturing remains a fundamental constraint. China's Ministry of Foreign Affairs and Ministry of Commerce issued statements condemning the Dutch government for violating the spirit of the contract, urging it to correct its mistakes, and warning that necessary measures will be taken to protect the interests of companies. At the same time, the European Automobile Manufacturers' Association (ACEA) issued a warning, noting that certification of alternative suppliers would take months and existing inventory would only last a few weeks, putting European automakers in a "countdown" mode.

Supply chain uncertainty has triggered a chain reaction in the market. Distributors in Shenzhen's Huaqiangbei region reported that Nexperia chip prices have soared and are "unavailable," with delivery times for some automotive-grade products extending to over 12 weeks. Meanwhile, listed semiconductor companies have received a large number of inquiries for alternatives, but are struggling to fill the production capacity gap in the short term. Industry experts point out that Nexperia's technological barriers and high automotive certification requirements make alternative solutions difficult to implement, and that industry restructuring will require a long process.

This incident reflects the profound impact of geopolitical tensions on the semiconductor supply chain. Amidst the escalating "chip war," automakers and suppliers worldwide are accelerating diversification efforts to reduce their reliance on a single region. Japanese automakers have initiated emergency negotiations with alternative suppliers, but the immediate situation remains uncertain. In the long term, decentralization and regional restructuring of the supply chain may become inevitable, and the struggle for technological autonomy will become a core element of industry competition. Nexperia's supply crisis isn't just a business crisis; it's a crucial test for the global automotive industry. Balancing geopolitical risks with efficiency demands presents a complex challenge for all involved.