The Indian arm of German auto parts maker Bosch has raised concerns over potential supply chain disruptions arising from ongoing dispute at semiconductor supplier Nexperia. Bosch Ltd, for which electronic shipments from Nexperia is essential for manufacturing processes, has warned of temporary production cuts if the situation does not improve.
“Changes in foreign trade policy and geopolitical developments, such as those affecting Nexperia, significantly impact our business. The current situation presents us with significant challenges,” Bosch India said in a statement.
“We are currently working to serve our customers and to avoid or minimize production restrictions. However, if there is no improvement of the export control restrictions, temporary production adjustments in selected Bosch’s manufacturing plants cannot be ruled out.”
Nexperia supplies essential semiconductors parts — such as diodes, transistors, and logic devices—used in almost every modern vehicle’s electronic control system. These components play a critical role in the functioning of key automotive systems, including battery management, braking, and various sensor modules.
Most of Nexperia’s chips are designed and manufactured in Europe but then shipped to China for final packaging and testing. Nexperia is estimated to account for about 5% of the world’s automotive silicon discrete market, with a stronger foothold in Europe.
The turmoil began in September when the Dutch government seized control of Nexperia's governance, citing concerns over corporate oversight and national security risks.
In response, China imposed export curbs on Nexperia’s Chinese unit, restricting shipments of key components abroad from the Dongguan facility in China. As a result, production at the Dongguan plant has been scaled back. About 70% of all Nexperia products are assembled in its factory in Dongguan.