Nexperia fallout threatens automobile production as Japanese carmakers warn of supply disruptions while European companies prep assembly line shut-downs — mature-node chip market in crisis as supply dwindles

Japanese carmakers, including Honda, Mazda, Nissan, and Toyota, are facing potential supply disruptions as Nexperia warns of chip shortages due to the conflict between the Dutch government and the company's Chinese owners. Volkswagen is also at risk of halting production of certain car models in Germany due to the chip supply issues. Nexperia's chips are crucial for electronic control systems in cars, and the shortage could lead to assembly line shutdowns across the industry. Japanese and European companies are exploring alternative chip suppliers to mitigate the impact, but switching suppliers involves time and costs.