China has banned exports of Nexperia’s completed merchandise, that are broadly utilized in automobile components, in response to the Netherlands seizing management of the corporate.
Revealed On 24 Oct 2025
German automobile components provider Bosch is getting ready to furlough employees at its Salzgitter plant if a commerce dispute between China and the Netherlands over Dutch chipmaker Nexperia just isn’t resolved quickly, amid mounting issues in Europe’s beleaguered automobile trade.
Bosch and different suppliers are scrambling for alternate options after China banned exports of Nexperia’s completed merchandise in response to the Netherlands seizing management of the corporate, whose Chinese language proprietor Wingtech has been flagged by the USA as a potential nationwide safety danger.
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As a result of Nexperia’s chips are broadly utilized in automobile components, the standoff dangers including to issues for Europe’s carmaking sector on prime of US tariffs and Chinese language curbs on rare-earths exports.
“We’re presently doing every thing we are able to to serve our clients and keep away from or minimise manufacturing restrictions,” a Bosch spokesperson mentioned in an emailed assertion to the Reuters information company.
“We’ve got not but made any changes to working hours at our German areas, however are getting ready to take action, significantly in Salzgitter,” she mentioned, including that potential furlough measures had been being ready on the plant.
Salzgitter is Bosch’s lead plant for motor management models for combustion and electrical automobiles, and employs about 1,400 employees.
Earlier on Friday, Volkswagen mentioned it had secured manufacturing in Germany for the approaching work week throughout the group, which incorporates the core VW model and luxurious subsidiary Porsche.
“In view of the dynamic state of affairs, nevertheless, short-term impacts on the manufacturing community of the Volkswagen Group can not usually be dominated out,” a spokesperson mentioned.
Worsening state of affairs
BMW and Mercedes have additionally warned that their provider networks are affected.
A regional consultant of Germany’s IG Metall union warned on Friday of a worsening state of affairs.
Some automotive suppliers are already seeing “extreme difficulties” and have began to announce furlough schemes for staff, Horst Ott, IG Metall district supervisor within the southern state of Bavaria, mentioned at an trade occasion in Munich.
He didn’t point out any firms by title.
Bosch mentioned it was drawing on different suppliers and optimising inventories in its international manufacturing community in a bid to stop manufacturing stoppages.
Most Nexperia chips are manufactured in Europe, however packaged in China.
Trade sources say switching suppliers is feasible, with Infineon, NXP and Texas Devices potential alternate options, however this takes time resulting from approval processes.
Auto trade our bodies have referred to as for a political answer.
Dutch Prime Minister Dick Schoof mentioned the state of affairs with different European leaders throughout an EU summit in Brussels this week.
