The Nexperia Dispute Is Still Heating, German And Japanese Automotive Giants Continue To Be Inflamed

Bosch is at the forefront of utilizing AI-powered technology in ADAS solutions. (Photo: Bosch)

JAKARTA Germany's automotive suppliers, including the Bosch giants, are still struggling to face a shortage of global chip supplies sparked by a trade dispute over producer Nexperia. Bosch confirmed Tuesday that thousands of its workers were facing production disruptions, forcing the company to implement afurlough policy in three major locations.

This scarcity comes from Nexperia, a company that provides simple but very important chips and is widely used in car electronics systems and other consumer products. Currently, China and the Netherlands are fighting over control of the company.

Live Impact On Thousands Of Workers

Reuters reported, quoted Tuesday, November 19, Bosch reported production disruptions in three locations: Ansbach and Salzgitter in Germany, as well as Braga in Portugal. The company said it was trying to prioritize all means to serve customers and keep production restrictions to a minimum.

To overcome supply congestion, Bosch has implemented state-backed leave measures ("as needed") for its employees:

Salzgitter, Germany: 300 to 400 out of 1,300 workers affected.

Ansbach, Germany: About 650 out of 2,500 workers use a leave scheme.

Braga, Portugal: Around 2,500 of the total 3,300 employees were affected by the adjustment of working hours or temporary leave.

The supply crisis heated up after the Dutch government took control of the Nexperia in September due to fears of technology transfers, even though the company is currently owned by China. This move then prompted Beijing to limit exports of Nexperia products from China.

The dispute has forced major suppliers such as Bosch, Aumovio, and ZF Friedrichshafen to seek alternative suppliers, although China's Ministry of Commerce has granted exceptions to export bans for some.

Another supplier, ZF Friedrichshafen, said their chip supply was safe until the middle of next week, but the company's spokesperson added that the leave step "cannot be ruled out" afterward.

The German Automotive Association (VDA) warns that the situation remains tense. VDA Managing Director, Marcus Bollig, told Reuters, "It's too early to declare it safe "we can't rule out any further impact on the supply chain in the coming weeks."

Globally, this scarcity also hit the supply chain. Japan's Nissan will reportedly cut production by 1,400 vehicles at the Kyushu plant next week. Meanwhile, Honda gave a positive signal by announcing it would resume regular output in their North American factories.

Although tensions continue, there is hope to defuse the situation. A senior Dutch government delegation is scheduled to visit Beijing this week to try to find compromise in the Nexperia dispute.