(MENAFN) Germany’s biggest automobile manufacturer, Volkswagen, might be forced to suspend operations at a crucial plant due to a scarcity of semiconductors.

This shortage has arisen following the Dutch government’s takeover of a Chinese-owned chip manufacturer, as reported by a media outlet, citing unnamed sources.

Late last month, the Netherlands assumed control of the Nexperia factory located in Nijmegen, citing concerns related to intellectual property and national security.

According to a report by a news agency last week, which reviewed court documents from Amsterdam, this action was taken under pressure from US authorities. Nexperia’s parent company, Wingtech, was added to a US blacklist in 2024 amidst an ongoing trade conflict with China.

In response, Beijing imposed a ban in early October preventing Nexperia from exporting finished chips from China. These chips are widely utilized in the electronic control units of Volkswagen’s vehicles.

On Wednesday, the media outlet disclosed that Volkswagen — which also owns the brands Skoda, Seat, Audi, Porsche, Lamborghini, and Bentley — currently appears to have no substitute for the chips supplied by Nexperia.

Insiders at the company revealed to the publication that due to the semiconductor shortage, production at Volkswagen’s Wolfsburg plant is expected to stop starting next Wednesday.

The first vehicles affected will be the Volkswagen Golf models, with other models following suit.

Should the supply issues persist, operations might also be suspended at Volkswagen’s facilities in Emden, Hanover, Zwickau, and additional locations, according to a person familiar with the situation.

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