Automakers around the world and their suppliers have begun scaling back production after a dispute over a Chinese-owned chipmaker in the Netherlands led to a shortage of the semiconductors needed to power the systems in vehicles.
Representatives from China and the European Union met on Tuesday in an effort to resolve the standoff, more than a month after the Dutch government seized control of the chipmaker, Nexperia. Beijing has halted deliveries of chips from its factories and criticized officials in the Netherlands for failing to work to find a resolution.Efforts from Washington to try to resolve the dispute have failed, leaving more companies concerned they may be forced to halt production if a solution is not found soon.Europe’s car industry has been the most vocal, but Nexperia makes thousands of chips used by other industries to make products like washing machines, vacuum cleaners, night vision devices, radars and tanks.“I think there are very justified concerns about global manufacturing output being impacted if this can’t be resolved in the next few weeks,” said Chris Miller, author of the book “Chip War,” who reports widely on the semiconductor industry.How did the chip dispute start?Nexperia, which has headquarters in the Netherlands, was bought by a Chinese company, Wingtech, in December 2019 and has since shipped basic, but necessary, chips to manufacturers around the world.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe.