Volkswagen Warns of Production Disruptions Amid Nexperia Chip Supply Issues

Volkswagen has flagged potential production disruptions due to supply chain vulnerabilities linked to Nexperia, a Chinese-owned semiconductor manufacturer. While Nexperia doesn't supply chips directly to the automaker, critical components from Volkswagen's suppliers incorporate its technology. The Ripple effect exposes the entire production chain to geopolitical tensions.

The Dutch government's seizure of Nexperia last month—citing national security concerns—has triggered Beijing's export restrictions. This standoff threatens Europe's industrial ecosystem, where Nexperia's automotive and consumer electronics chips are widely embedded. Volkswagen shares fell 2.8% following the disclosure, reflecting market unease about operational continuity.

"We're monitoring risks proactively with all stakeholders," a company spokesperson told CNBC. Though no assembly lines have halted yet, the automaker acknowledged short-term impacts remain probable. The situation underscores how semiconductor nationalism can destabilize global manufacturing networks without direct supplier relationships.