German auto suppliers grapple with Nexperia chip crisis amid export uncertainty

German automotive companies are trying to overcome the Nexperia crisis as Beijing signals a restart of the company’s chip exports to protect the global semiconductor industry. However, with uncertainties remaining about the resumption of deliveries from China, German automotive suppliers face difficulties managing the crisis.

A spokesperson for the German auto parts supplier ZF Friedrichshafen told the SCMP on Wednesday, “Our task force is working intensively to secure our chip supply. The situation across the industry is still very tense.”

Noting that they have made preparations “for short-term work in some plants as a precautionary measure,” the spokesperson added, “This will help us minimize the impact of the chip shortage on our employees. It is unclear to what extent and at what speed deliveries from China can resume.”

The group is in contact with the relevant authorities in China through its local branch to obtain an exemption from the government’s export ban.

China’s Ministry of Commerce announced on Thursday that it has “promptly approved” relevant export license applications from Chinese exporters, reiterating that it would grant exemptions for eligible exports.

Ministry spokesman He Yadong said at a press conference that the country is “acting responsibly for the stability and security of the global semiconductor industry” and is “making efforts to facilitate the resumption of supply from Nexperia China.”

According to information obtained by the SCMP, other German companies in the supply chain, such as parts supplier Aumovio and leading automaker Volkswagen, are seeking ways to alleviate the chip shortage caused by the Nexperia crisis.

After the Netherlands took control of Nexperia on September 30, citing national security concerns and invoking a law unused since 1952, Beijing responded by imposing export restrictions on Nexperia chips produced in its Chinese facilities.

According to the European Commission, China’s Ministry of Commerce has held talks with European companies in recent days to restart the disrupted flow of semiconductors, thereby preventing a “worst-case scenario.”

Nexperia welcomed China’s commitment to facilitating the restart of exports from the company’s Chinese plant and stated in a release on Wednesday that it wants to see “further details on the conditions, criteria, and procedures regarding the easing of export restrictions.”

The Netherlands-based chip manufacturer said its dedicated teams are working “urgently” to resolve the supply disruption.

Speaking to the SCMP, Aumovio confirmed that it has applied to Chinese authorities for an exemption for Nexperia components.

The supplier said that when facing supply shortages, it typically uses existing stocks and alternative suppliers and sources.

Meanwhile, Volkswagen said it is examining alternative supply options to minimize potential impacts on its supply chain but did not name specific suppliers. A company spokesperson said production has not yet been affected and that it “will take appropriate measures according to developments.”

German automotive chip manufacturer Infineon Technologies declined to comment on whether it is working with Volkswagen on chips to replace those from Nexperia.

“In general, we are in close contact with our customers and support them in meeting their requirements regarding supply chain resilience and their demands,” an Infineon spokesperson said, adding that the company does not “provide details on individual discussions with customers.”

Industry sources indicated that no single supplier can replicate Nexperia’s entire product portfolio and that it would take time for other chipmakers to reorganize production to fill the gap.

The German Association of the Automotive Industry told the SCMP that the group has established a temporary information platform through a neutral third party, where the industry is offering available Nexperia microchip capacities to “prevent or mitigate possible negative consequences.”