Nexperia Crisis New Chip Supplier to Save VW from Production Halt

From Andreas Wehner | Translated by AI 1 min Reading Time

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In the crisis surrounding chip supplier Nexperia, Volkswagen cautiously gives the all-clear: A replacement supplier is now set to step in.

(Image: Volkswagen)
(Image: Volkswagen)

Volkswagen is optimistic about avoiding production halts due to a lack of semiconductors. "We have an alternative supplier who could compensate for the supply shortfall of Nexperia semiconductors," said Christian Vollmer, the brand's production board member, to the "Handelsblatt." (German business and financial newspaper) Negotiations are currently underway with a company. Vollmer did not name any names.

A company spokesperson emphasized to dpa upon request that there is no conclusion yet. "The Volkswagen Group is currently actively evaluating alternative procurement options to minimize potential impacts on its supply chain," he said. "The company is in close communication with potential suppliers. Please understand that we cannot comment further on the ongoing discussions at this time."

As recently as Wednesday, VW had warned of potential production outages, which could even occur at short notice. Nexperia is experiencing supply issues after the Dutch government took control of the company, which is owned by a Chinese parent corporation. In response, China halted the export of Nexperia products, such as chips for the automotive industry.

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