By Alimat Aliyeva
The German automotive giant Volkswagen Group is preparing to
suspend the production of several key car models due to a worsening
shortage of semiconductors. The disruption stems from mounting
uncertainty surrounding Nexperia, a major supplier of microchips to
the European automotive sector, Azernews
reports.
The first model to be affected will be the Golf, followed by a
halt in the production of the popular Tiguan SUV. According to
internal reports, Volkswagen’s semiconductor stockpile is only
expected to last for one more week. After that, the company may be
forced to shut down its assembly lines temporarily.
This development could be a serious blow to Volkswagen, which is
already under pressure from increased competition from Chinese
automakers and high tariffs imposed by the United States. In
response, the company is considering transferring tens of thousands
of workers to temporary part-time employment.
Despite the challenges, a Volkswagen spokesperson told the press
that the company is “closely monitoring the semiconductor market”
and that “material supplies are secured in the short term.”
The situation escalated on October 12, when the Dutch Ministry
of Economic Affairs activated the “Accessibility of Goods Act” in
relation to Nexperia — a legal mechanism reserved for exceptional
cases to protect national strategic assets.
Just two days later, the Amsterdam Court of Appeal dismissed
Nexperia CEO Zhang Xuezheng, appointing an interim director and
transferring all but one of the company’s shares into the control
of an independent manager.
In retaliation, China imposed export restrictions on Nexperia
and its subcontractors, effectively banning the export of certain
chip components from its factories. As Bloomberg reported, this
move threatens to choke off vital supplies to European
manufacturers.
Nexperia, owned by the Chinese tech conglomerate Wingtech, is a
critical supplier of semiconductors not only for the automotive
industry but also for European consumer electronics. Its chips are
found in everything from cars to smartphones and home
appliances.
This incident highlights the fragile nature of global supply
chains, especially in key sectors like automotive manufacturing,
where a single supplier disruption can ripple across an entire
continent’s economy.
