Story perspectives

Global Car Makers Face Production Crisis Amid Chip Shortage

11/6/2025

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Summary

Story summary

Automakers worldwide are cutting production due to a semiconductor shortage linked to Nexperia, the Dutch-owned chipmaker, after the Dutch government seized control.
The seizure prompted China to halt chip exports.
Analysts predict a slow resolution to the Sino-Dutch dispute, with both sides reluctant to concede.
Nexperia processes 70% of its chips in China, and European carmakers, including Volkswagen and Mercedes, are scrambling for alternative suppliers.

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Story summary

Automakers worldwide are cutting production due to a semiconductor shortage linked to Nexperia, the Dutch-owned chipmaker, after the Dutch government seized control.
The seizure prompted China to halt chip exports.
Analysts predict a slow resolution to the Sino-Dutch dispute, with both sides reluctant to concede.
Nexperia processes 70% of its chips in China, and European carmakers, including Volkswagen and Mercedes, are scrambling for alternative suppliers.