The Alliance for Automotive Innovation, a chamber of commerce organization representing major automakers, warned on the 16th that a dispute between China and the Dutch government caused a disruption in chip supply, which may quickly affect U.S. auto production.

Reuters reported that the European Automobile Manufacturers Association (ACEA) stated that automakers and their suppliers received notification from Nexperia last week that they could no longer guarantee delivery. The European Automobile Manufacturers Association also said that manufacturing operations may be severely affected.

The United States Automotive Innovation Alliance, which represents General Motors, Toyota, Ford, Volkswagen, Hyundai and almost all major car manufacturers, urges a speedy solution to the problem.

John Bozzella, CEO of the Automotive Innovation Alliance, said: "If automotive chip shipments cannot recover quickly, it will affect automotive production in the United States and many other countries, and even have spillover effects on other industries. This problem is very serious."

Some automakers told Reuters that U.S. automakers may be affected as early as November.

Nexperia wafers are critical to U.S. vehicle and parts manufacturing. The Dutch government announced on the 12th that it will control Nexperia on September 30, citing concerns that technology may be transferred to its Chinese parent company Wingtech.

Court information shows that the Dutch government took action several months after the United States put pressure on Nexperia. Nexperia may be affected by new US regulations. According to the new regulations, companies in which one or more entities on the Export Control Entity List hold more than 50% of the shares will be included in the scope of restrictions.

Washington included Wingtech Technology in the Entity List at the end of December last year, and Nexperia is a wholly-owned subsidiary of Wingtech Technology. Nexperia stated on the 14th that the Chinese Ministry of Commerce issued an export control notice on the 4th, banning Nexperia China and its subcontractors from exporting some components.

Both Volkswagen Group and BMW stated that their European production lines have not been affected yet, but they are working hard to assess potential supply risks.

Further reading: China restricts Nexperia exports, causing automotive supply chain to tremble The Dutch government intervenes in Nexperia and worries about the flow of technology to Chinese parent company Wingtech Technology