Bosch Warns of Production Risks Amid Nexperia Dispute Impact on Auto Suppliers

Recent trade tensions involving Nexperia, a Dutch chip manufacturer, have raised significant concerns within Europe’s automotive supply chain. On October 24, 2025, China announced a ban on the export of Nexperia’s completed products. This decision came after the Netherlands took control over the company due to national security concerns regarding its Chinese owner, Wingtech.

Impact on Bosch and the Auto Industry

As the situation escalates, Bosch, a prominent German automotive parts supplier, is preparing to furlough workers at its Salzgitter plant if a resolution is not reached quickly. This plant specializes in motor control units essential for both combustion and electric vehicles.

• Bosch’s Salzgitter facility has approximately 1,400 employees.
• The company is exploring alternative suppliers and optimizing its inventory to mitigate production disruptions.
• Nexperia’s chips are crucial for various car components, heightening the potential impact on the industry.

Concerns Among Major Automakers

Other major automotive manufacturers are also feeling the strain. Volkswagen has managed to secure production schedules for the upcoming week, yet the company acknowledges the volatility of the situation. Both BMW and Mercedes have expressed similar concerns regarding the effects on their supply chains.

Horst Ott, district manager of Germany’s IG Metall union, remarked on the increasingly dire circumstances some automotive suppliers face. He noted that several are experiencing significant challenges and have initiated furlough schemes for their workforce.

Seeking Alternatives and Political Solutions

While most Nexperia chips are produced in Europe, their packaging occurs in China, contributing to the supply chain complexities. Industry experts suggest that alternative suppliers, such as Infineon, NXP, and Texas Instruments, could be viable options; however, transitioning suppliers is a time-consuming process that requires regulatory approvals.

In response to these challenges, automotive industry stakeholders are urging for a political resolution. During an EU summit in Brussels, Dutch Prime Minister Dick Schoof held discussions with other European leaders regarding the matter.

The ongoing dispute between China and the Netherlands exemplifies the fragile state of global supply chains, particularly in the automotive sector. As Bosch and its counterparts navigate these challenges, the outlook remains uncertain.