After the Netherlands took control of the company, China banned the export of finished products from Nexperia, which is widely used in auto parts.
Published October 24, 2025
German auto parts maker Bosch is preparing to furlough employees at its Salzgitter factory if the trade dispute between China and the Netherlands over Dutch semiconductor maker Neexperia is not resolved soon, amid growing concerns about Europe’s struggling auto industry.
Bosch and other suppliers are scrambling for alternatives after China banned the export of finished Neexperia products after the Netherlands took control of the company. The company’s Chinese owner, Wingtech, has been warned by the United States for possible national security risks.
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Nexperia’s chips are widely used in auto parts, so the standoff risks creating further problems for Europe’s auto manufacturing sector, on top of U.S. tariffs and China’s rare earth export restrictions.
“We are currently doing everything we can to serve our customers and avoid or minimize production restrictions,” a Bosch spokesperson said in an emailed statement to Reuters.
“While we have not yet adjusted working hours at our German locations, we have done so in Salzgitter in particular,” he said, adding that the factory was preparing for possible furloughs.
Salzgitter is Bosch’s main plant for motor control units for internal combustion engines and electric vehicles, and employs around 1,400 people.
Earlier on Friday, Volkswagen announced that it had secured production in Germany for the upcoming working week across the group, including the core Volkswagen brand and luxury subsidiary Porsche.
“However, given the dynamic situation, a short-term impact on the Volkswagen Group’s production network cannot generally be ruled out,” the spokesperson said.
worsening of the situation
BMW and Mercedes have also warned that their supplier networks will be affected.
The regional representative of Germany’s IG Metall trade union warned on Friday of the worsening situation.
Horst Ott, IG Metall’s regional manager for the southern state of Bavaria, said at an industry event in Munich that some car suppliers were already facing “serious difficulties” and had begun announcing furlough schemes for workers.
He did not mention the company name.
Bosch said it is leveraging alternative suppliers and optimizing inventories in its global production network to prevent production disruptions.
Most Nexperia chips are manufactured in Europe, but packaging is done in China.
Industry sources say switching suppliers is possible, with Infineon, NXP and Texas Instruments among possible alternatives, but the approval process will take time.
Auto industry groups are calling for a political solution.
Dutch Prime Minister Dick Schuch discussed the situation with other European leaders at the EU summit in Brussels this week.
