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ASML Semiconductor Crisis: Netherlands Seeks Solutions as Volkswagen and Auto Industry Face Dilemma

European M&A and Investment 2025-10-22 09:37:52

Image source: dpa | David Hammersentis

On Tuesday, Chinese Minister of Commerce Wang Wentao, upon request, had a phone conversation with Dutch Minister for Economic Affairs Micky Adriaansens. The two sides exchanged views on issues including Nexperia. Wang Wentao stated that China attaches great importance to Sino-Dutch economic and trade cooperation. The measures taken by the Dutch side regarding Nexperia have seriously affected the stability of the global supply chain. China urges the Netherlands to act from the perspective of maintaining the overall security and stability of the global supply chain, uphold the spirit of contract and the principles of marketization and rule of law, promptly and properly resolve the issue, protect the legitimate rights and interests of Chinese investors, and create a fair, transparent, and predictable business environment.

Karemans stated that the Dutch side attaches great importance to the economic and trade relations between the Netherlands and China, and is willing to communicate closely with the Chinese side to find a solution to the ASML semiconductor issue that aligns with the economic interests of ASML, Europe, and China.

The German Association of the Automotive Industry (VDA) also hopes that all parties will focus on "quick and pragmatic solutions." VDA President Hildegard Müller said in a statement: "Nexperia is an important global chip supplier, and its chips are often used in electronic control units in automotive electronic systems, as well as being important to other industries. If the disruption in the supply of Nexperia chips is not resolved in the short term, this situation could lead to significant restrictions on automotive production in the short term and might even trigger production stoppages. The German Association of the Automotive Industry has been in contact with affected companies, the industry, the federal government, and the European Commission. The current focus should be on finding quick and pragmatic solutions."

According to reports, due to a chip supply disruption from Nexperia, Volkswagen plans to reduce production at its headquarters plant in Wolfsburg, with the Golf production expected to be halted first, followed by a possible interruption in the production of the Tiguan. However, when asked about this matter, Volkswagen emphasized that the suspension of Golf and Tiguan production is due to "planned inventory assessment measures," with regular production expected to resume next week and unrelated to the Nexperia incident. Volkswagen stated that Nexperia is not a direct supplier, but its components are included in the parts Volkswagen receives from suppliers. A spokesperson for Volkswagen indicated that the planned production interruption in Wolfsburg is not related to the chip shortage. Nevertheless, the company is closely monitoring the situation and maintaining close communication with all relevant parties to identify risks as early as possible.

BMW expressed a similar view: "Production at our factory is still proceeding as planned, but the company is continuously assessing the situation and working closely with suppliers to mitigate potential risks as early as possible."

Volkswagen and BMW are reacting calmly, but parts suppliers are forming crisis teams. Some suppliers have already begun preparing for potential supply bottlenecks. ZF has established an internal crisis team to stabilize the supply chain and seek alternative sources. Bosch also stated: "Like other customers of Nexperia, the current situation presents us with significant challenges. Therefore, we hope that the relevant parties can reach a solution as soon as possible to alleviate the current supply tensions." These reactions indicate that despite years of efforts to diversify supply chains, the automotive industry remains heavily dependent on individual chip manufacturers.

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ASML Semiconductor Crisis: Netherlands Seeks Solutions as Volkswagen and Auto Industry Face Dilemma

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