China’s Chip Export Ban Disrupts Europe’s Auto Sector, Porsche Reports €1B Loss

Europe’s automotive industry faces renewed supply chain turmoil as China’s export restrictions on Nexperia’s semiconductors cripple production lines. Volkswagen Group CEO Oliver Blume confirms short-term inventory buffers but warns of persistent risks, calling the situation a "massive crisis" compounded by falling Chinese demand and U.S. tariffs.

Porsche’s €1 billion operating loss underscores the sector’s vulnerability. The luxury marque suffers dual blows: semiconductor shortages disrupting production just as its key Chinese market contracts. Substitution challenges and inflated component costs now threaten the region’s fragile post-pandemic recovery.

The geopolitical flashpoint centers on Nexperia—a Wingtech-owned Dutch chipmaker—after Netherlands authorities seized control citing security concerns. Analysts note the MOVE exacerbates structural weaknesses in Europe’s just-in-time manufacturing model, with Audi and Porsche bearing immediate brunt.