Automakers Halt Production Amid Nexperia Semiconductor Shortage
Global automakers suspend assembly lines across multiple continents as a supply disruption at Dutch chipmaker Nexperia halts deliveries of critical automotive semiconductors. The crisis, triggered by a diplomatic dispute between the Netherlands and China, affects power management and control units essential for vehicle electronics. Production cuts now impact over 500,000 units monthly, with U.S. plants facing the sharpest reductions since the 2021 chip shortage.
Nissan secures sufficient inventory through early November but idles shifts at its U.S. Tennessee facility starting December 2, affecting 1,200 workers. Mercedes-Benz reports delays in EQS and GLE assembly at its Alabama plant, with output down 15% for the week. Honda pauses operations at its Greensburg, Indiana, Civic plant, reducing runs by 20% or 4,000 vehicles weekly, while adjusting schedules in Ohio and Mexico.
The shortage originates from Nexperia’s Dongguan, China factory, which supplies 40% of its automotive-grade chips, including MOSFETs for braking and infotainment systems. A November 7 standoff between Dutch authorities and Chinese parent Wingtech Technology forces a two-week closure, stranding 10,000 wafers in transit. Nexperia accuses Wingtech of attempting to relocate supply chains, escalating the impasse.
Lucid Group engineers source alternatives for Air sedan modules, postponing 2,000 units at its Arizona factory. Stellantis trims Ram 1500 and Jeep Grand Cherokee builds in Michigan by 10%, citing insufficient engine control chips. Ford evaluates impacts on F-150 Lightning production in Michigan, where battery management systems rely on affected components.
U.S. Commerce Department monitors the event under export controls, as 25% of Nexperia’s output feeds North American vehicles. The Alliance for Automotive Innovation estimates $2.5 billion in lost revenue for December alone, with ripple effects on suppliers like Magna and Lear. Brazil’s industry association warns of full stoppages in São Paulo plants within 14 days absent resolution.
Automakers stockpile 60 days’ supply on average, but just-in-time models amplify vulnerabilities. Volkswagen Group cuts Audi Q5 and Porsche Macan runs in Chattanooga, Tennessee, by 12%. General Motors shields Silverado output through diversified sourcing but flags potential Q1 2026 delays for EV crossovers.
Recovery hinges on Wingtech’s compliance with Dutch inspections, targeted for December 5. Nexperia ramps Hamburg and Nijmegen plants to 70% capacity, covering 30% of lost volume. Industry analysts at S&P Global forecast a 5% dip in U.S. vehicle output for Q4, compounding tariff pressures on imports.
The episode underscores reliance on single-source semiconductors, prompting calls for diversified Asian supply bases. Tesla mitigates via in-house chip design, maintaining Cybertruck ramps in Texas unaffected. Long-term, the crisis accelerates U.S. CHIPS Act investments, with $3 billion allocated for automotive-grade fabs by 2027.
