The automotive sector is experiencing a crisis on a global scale, which leaves the European Union (EU), the United States and China with their backs turned. Negotiations are underway for a resolution, but uncertainty is the feeling that dominates the sector.
One of the biggest stress factors is linked to Nexperia’s semiconductor chips, essential for the cars to function.
With many companies dependent on Nexperia’s production chain, disruptions from a geopolitical point of view (or any other) can generate a crisis on a global scale. Now, the company is based in the Netherlands, where control of it was taken unilaterally by the government.
The origin is the trade tensions that have grown in recent monthsespecially between the USA and China (starting with the tariff war), but which also extended to Europe. However, Beijing’s response was not long in coming, with the decision to suspend the export of products manufactured by Nexperiawith the production chain being established in China.
It is worth remembering that the Chinese Wingtech acquired 100% of Nexperia’s capital in 2019, with an investment of 3.6 billion euros.
At this time, negotiations are underway to resume trading in Nexperia’s semiconductor chips, but trade tensions are a barrier. The EU, USA and China want to gain space in the automotive industry and competition is fierce. As far as a possible easing of tensions is concerned, nothing is certain at the moment.
In any case, Beijing made it known, on Saturday, that it will establish “exemptions” on the export of Nexperia chips for companies that meet certain requirements. The announcement allows tensions to be alleviated, albeit partially.
Why are these chips so important?
Nexperia semiconductor chips support the most varied functionalities of the cars in which they are installed (lights, chassis, security measures, air conditioning, among others).
They are very small but, together, they are crucial for functions that we take for granted in cars. A modern model can include between one thousand and three thousand chips like these.