Azernews.Az

By Alimat Aliyeva

The German automotive giant Volkswagen Group is preparing to suspend the production of several key car models due to a worsening shortage of semiconductors. The disruption stems from mounting uncertainty surrounding Nexperia, a major supplier of microchips to the European automotive sector, Azernews reports.

The first model to be affected will be the Golf, followed by a halt in the production of the popular Tiguan SUV. According to internal reports, Volkswagen’s semiconductor stockpile is only expected to last for one more week. After that, the company may be forced to shut down its assembly lines temporarily.

This development could be a serious blow to Volkswagen, which is already under pressure from increased competition from Chinese automakers and high tariffs imposed by the United States. In response, the company is considering transferring tens of thousands of workers to temporary part-time employment.

Despite the challenges, a Volkswagen spokesperson told the press that the company is "closely monitoring the semiconductor market" and that "material supplies are secured in the short term."

The situation escalated on October 12, when the Dutch Ministry of Economic Affairs activated the "Accessibility of Goods Act" in relation to Nexperia — a legal mechanism reserved for exceptional cases to protect national strategic assets.

Just two days later, the Amsterdam Court of Appeal dismissed Nexperia CEO Zhang Xuezheng, appointing an interim director and transferring all but one of the company's shares into the control of an independent manager.

In retaliation, China imposed export restrictions on Nexperia and its subcontractors, effectively banning the export of certain chip components from its factories. As Bloomberg reported, this move threatens to choke off vital supplies to European manufacturers.

Nexperia, owned by the Chinese tech conglomerate Wingtech, is a critical supplier of semiconductors not only for the automotive industry but also for European consumer electronics. Its chips are found in everything from cars to smartphones and home appliances.

This incident highlights the fragile nature of global supply chains, especially in key sectors like automotive manufacturing, where a single supplier disruption can ripple across an entire continent's economy.