Automakers are preparing for potential semiconductor shortages as Nexperia’s wafer inventory in China nears depletion, despite recent efforts by Beijing to relax export restrICtions.

Industry sources suggest the company’s wafer supply could run out by mid-December. Nexperia is reportedly seeking alternative suppliers, while some customers are adopting temporary measures to keep production lines running. One workaround involves sourcing wafers from Nexperia’s Hamburg facility, shipping them separately to China, and using its Dongguan site for final packaging.

The shortage has already disrupted vehicle production. Manufacturers are exploring options with rival chipmakers, including Onsemi and STMicroElectronics, to secure components. Nexperia’s European operations are also planning to expand packaging capacity in Malaysia and the Philippines to reduce future risks.

The impact is being felt across the sector. Nissan is expected to cut output by 1,400 vehicles at its Kyushu plant, following an earlier reduction of 900 units, with production plans at other sites still under review.

German auto-parts supplier Bosch has confirmed ongoing disruptions at three factories—Ansbach, Salzgitter, and Braga—affecting thousands of workers. The company is using state-backed furlough schemes for 300–400 employees at Salzgitter and around 650 at Ansbach, while approximately 2,500 of the 3,300 staff at its Braga site face temporary working-time reductions or furloughs.

Volkswagen appears less affected. Brand chief Thomas Schaefer sAId the company has secured sufficient supplies and remains “secure at present.”

In an effort to ease tensions and stabilise supply chains, a Dutch government delegation is scheduled to visit China for talks, which many companies hope will help resolve the issue.