EU and American car maker Honda are warning of the halt of production lines due to a shortage of Nexperia chips.
The crisis in manufacturing comes as the US government shut down is set to cost the US 14 billion, according to a report, and looting is reported to have started after 44 million Americans, or 1 in 6, are set to lose food stamps and members of the military will have to go without pay from mid November at the latest.
https://www.foxbusiness.com/fox-news-politics/us-economy-may-lose-up-14-billion-due-government-shutdown-standoff-cbo-warns
While Nexperia chips are " not very strategic components" like Nvidia, there are hundreds of them, small microprocessors in the lock systems, climate control, speedometers or whatever,” Volvo Chief Executive Håkan Samuelsson told The Wall Street Journal.
The vast majority cars, drones, weapons can be made without Nvidia chips but not without Nexperia chips. Or rare earth metals.
Morevoer, Nvidia chips are made from rare earth metals which China controls.
That means, a shortage of Nvidia, Infineo and other chips is set to grow, jeopardising the entire hi tech military and consumer industry of the USA, UK, Europe, Israel, Japan, Taiwan, Canada, Australia and allies.
Because Trump and the Epstein circle started the trade war with China, they will be blamed for the disastrous implosion of the Western economies, which is now imminent.
China and Russia will be able to buy up the West and put Trump, Kushner, von der Leyen, Soros and Gates, Mitsotakis on trial as per the well known Greek prosecutor probes D 15 218 and E 17 449 and spin offs and so win applause from the American public, military and globe.
From media
EU carmakers ‘days away’ from factories halting work in chip war with China
Industry body says reserves of Nexperia semiconductors are dwindling after Beijing bans exports of key components
Lisa O’Carroll
Wed 29 Oct 2025 15.56 CET
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Carmakers in the EU are “days away” from closing production lines, the industry has warned as a crisis over computer chip supplies from China escalates.
The European Automobile Manufacturers’ Association (ACEA) issued an urgent warning on Wednesday saying its members, which include Volkswagen, Fiat, Peugeot and BMW, were now working on “reserve stocks but supplies are dwindling”.
“Assembly line stoppages might only be days away. We urge all involved to redouble their efforts to find a diplomatic way out of this critical situation,” said its director general, Sigrid de Vries.
Another ACEA member, Mercedes, is now searching globally for alternative sources of the crucial semiconductors, according to its chief executive, Ola Källenius.
The chip shortage is also causing problems in Japan, where Nissan’s chief performance officer, Guillaume Cartier, told reporters at a car show in Tokyo that the company was only “OK to the first week of November” in terms of supply.
Beijing banned exports of Nexperia chips near the start of the month in response to the Dutch government’s decision to take over the Netherlands-headquartered company on 30 September and suspend its Chinese chief executive after the US flagged security concerns.
Last week car companies in the UK, EU and Japan, including brands such as Volvo, Volkswagen, Honda and Nissan, said the ban on exports from Nexperia factories in China could halt production lines.
“The industry is currently working through reserve stocks but supplies are rapidly dwindling. From a survey of our members this week, some are already expecting imminent assembly line stoppages,” de Vries said.
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Rare earths, in particular magnets, are used across the car industry for window, door and boot openings, while chips are critical to all electronics in vehicles, ranging from dashboard functions to ignition and transmission systems.
De Vries said while alternative suppliers for chips existed, it could take “months to build up additional capacity”. She said the “industry does not have that long before the worst effects of this shortage are felt”.
https://www.theguardian.com/business/2025/oct/29/europe-carmakers-china-computer-chip
Automakers are growing increasingly anxious about a shortage of simple microchips causing production disruptions, which started this week at Honda 7267 -0.81%decrease; red down pointing triangle plants in North America and are expected to spread around the world.
The global car industry has been fretting about the potential fallout over Nexperia, a Netherlands-based chip maker, after the company stopped exporting products from China earlier this month. The issue, which stems from an unusual geopolitical dispute involving the Dutch, Chinese and U.S. governments, has left some automakers and suppliers with low chip supplies that could run out in the coming days, people familiar with the matter say.
While Nexperia doesn’t make cutting-edge semiconductors, the company has a large share of the market for basic chips found in numerous car components. That widespread usage complicates efforts to source a sufficient supply of replacements, if the company doesn’t resume shipments in the near future, executives and analysts warn.
“These are not very strategic components, but there are hundreds of them, small microprocessors in the lock systems, climate control, speedometers or whatever,” Volvo Chief Executive Håkan Samuelsson told The Wall Street Journal.
https://www.wsj.com/business/autos/automaker-production-stoppages-begin-over-semiconductor-shortage-53e22201
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