The European Commission is forcing automakers to stop putting all their silicon eggs in one basket. New rules under the EU’s updated Chips Act will require car manufacturers to procure semiconductor chips from a minimum of two suppliers, a direct response to the Nexperia crisis that exposed just how fragile Europe’s automotive supply chain really is.
How one company’s crisis became everyone’s problem
Nexperia, the Dutch-headquartered but Chinese-linked semiconductor supplier, informed automakers on October 2, 2025, that it could no longer guarantee chip deliveries. The reason: the Dutch government intervened in Nexperia’s operations over national security concerns, effectively disrupting the flow of components to some of Europe’s biggest car brands.
BMW and Volkswagen both reported feeling the impact on their supplier networks by mid-October 2025. According to ACEA, the European automobile manufacturers’ association, buffer stocks of Nexperia chips could last only a few weeks.
Production halts were largely avoided, but only because major carmakers had contingency plans in place.
