European carmakers are deploying their “Covid playbook” as they prepare for a fierce battle over automotive chip supplies after the Dutch government seized control of Chinese-owned chipmaker Nexperia.
Carmakers and their suppliers are mapping out their exposure to Nexperia after Beijing moved to cut off its outbound shipments following the diplomatic tussle over a company the Dutch government has decided is crucial to Europe’s economic security.
Nexperia makes basic low-margin chips that are widely used in electronic systems in cars and control everything from lighting and airbag systems to locks and windows. It was sold to a Chinese consortium in 2017 before being bought by Chinese group Wingtech.