Global Chip Shortage: Impact on German Auto Suppliers Intensifies

German automotive suppliers face disruptions due to a global chip shortage caused by a trade dispute over Nexperia. Bosch, among others, struggles with production amid the crisis. The Dutch government seized Nexperia over technology transfer issues, and Beijing retaliated, complicating the supply chain further.

German automotive suppliers are grappling with a persistent global chip shortage, stemming from a complex trade dispute involving the manufacturer Nexperia. This has led to significant production issues for major players like Bosch, affecting thousands of workers across multiple sites, the company confirmed on Tuesday.

The conflict revolves around control over Nexperia, caught between Chinese and Dutch interests. The Dutch government recently took control of the company, triggering Beijing to restrict exports from Nexperia's Chinese facilities. This has forced companies like Bosch, Aumovio, and ZF Friedrichshafen to seek alternative suppliers swiftly.

As the chip crisis continues, Bosch has implemented state-backed furlough measures for 300 to 400 workers at its Salzgitter plant and around 650 at Ansbach. Meanwhile, 2,500 workers at the Braga plant in Portugal face temporary adjustments. Industry leaders warn of continued supply chain disruptions, affecting global producers like Nissan and Honda.

(With inputs from agencies.)