Nissan and Mercedes-Benz Sound Alarm Over Deepening Chip Supply Crisis

Nissan Motor and Mercedes-Benz on Wednesday became the latest global automakers to raise concerns about an intensifying semiconductor supply shortage, underscoring the escalating consequences of a dispute between the Netherlands and China over Dutch chipmaker Nexperia, news agency Reuters reported.

A trade and intellectual property standoff between China and the Dutch government over Nexperia, whose chips are extensively used in automotive components, is the latest obstacle for an industry already contending with the US tariffs and Chinese restrictions on rare earths. The situation also serves as a stark reminder of the vulnerability of automakers amid trade tensions between China and the West.

China's Export Ban After Dutch Govt. Seizure

China has prohibited exports of Nexperia's finished products from its Chinese manufacturing facilities after the Dutch government in September seized control of the chipmaker, citing concerns about the potential transfer of technology to Nexperia's Chinese parent company, Wingtech. The Chinese firm has been identified by the US as a possible national security risk.

"It's not a small issue, it's a big issue," Nissan's Chief Performance Officer Guillaume Cartier was quoted as saying by reporters when asked about the impact on chip supply. 

"For the moment we don't have full visibility."

Cartier, in a group interview at the Japan Mobility Show in Tokyo, said the automaker was "okay to the first week of November" in terms of chip supply.

Whilst it was possible to have a grasp of the state of supply at its biggest suppliers -- so-called Tier 1 -- it became more difficult further down the supply chain, he said.

Mercedes-Benz Scrambles for Alternatives

German carmaker Mercedes-Benz is now searching worldwide for alternative supply, CEO Ola Kaellenius said on Wednesday.

Kaellenius, too, said it was hard to see how the situation would play out.

Brazilian Auto Sector Faces Production Halts

In Brazil, a major auto-making hub, some manufacturers may have to halt operations within two to three weeks if the crisis continues, an official said on Tuesday.

The Brazilian government is contacting Chinese authorities to find a solution, the official said.

The semiconductor shortage stemming from the Nexperia dispute adds another layer of complexity to an already strained global automotive supply chain, threatening production schedules and vehicle deliveries across multiple continents. The situation demonstrates how geopolitical tensions can rapidly translate into tangible disruptions for manufacturers dependent on internationally integrated supply networks.