The Nexperia semiconductor crisis has once again exposed the fragility of the global auto industry’s chip supply chain, just years after the 2020–2023 shortage that halted millions of vehicle productions worldwide. Triggered by the Dutch government’s takeover of Nexperia and China’s subsequent export ban, the disruption affects “legacy” chips — simple but essential components like diodes and transistors used in nearly every vehicle system.

Industry experts warn that production slowdowns could spread within weeks, with Honda and Volkswagen already scaling back operations. Automakers and suppliers, including GM, Bosch, and Valeo, are scrambling to find alternative sources, but the process is slowed by complex validation requirements and limited global manufacturing capacity. Analysts note that despite lessons from the last shortage, the industry remains underprepared and overly reliant on just-in-time supply chains concentrated in a few regions. The crisis, deeply intertwined with ongoing geopolitical tensions among China, the Netherlands, and the U.S., highlights the urgent need for automakers to diversify chip sourcing and treat standard components as strategically vital.