BMW says its suppliers are 'affected' in dispute over chipmaker caught up in China-US trade war
New cars in the BMW Welt showroom on October 11, 2025. PHOTO: Frank Hoermann / SVEN SIMON / AFP / Profimedia
German carmaker BMW said on Thursday that part of its supplier network is affected by a dual trade and intellectual property dispute involving chipmaker Nexperia, which faces export restrictions in both the US and China.
Netherlands-based Nexperia, one of the largest makers of core chips and semiconductors used in automobiles and consumer electronics, is caught in a trade war between the world's two largest economies as US President Donald Trump steps up pressure on the technology sector while China curbs exports of rare metals.
The problems at Nexperia have raised concerns about possible negative effects on Europe's auto sector, with carmakers and their suppliers already grappling with tariffs, foreign competition and weak demand.
Nexperia is a subsidiary of the Chinese company Wingtech Technology, and is essential for maintaining Europe's technology supply chains.
What is happening with production at BMW
“Part of our supplier network is affected,” a BMW spokesman told Reuters when asked about the issue.
“We are in close contact with our suppliers and are continuously assessing the situation to identify potential supply risks at an early stage and take appropriate action if necessary,” the spokesperson added in an emailed statement.
Production continues at BMW plants as planned, he noted, without elaborating on supplier issues.
Another German car company, Mercedes-Benz, said it was monitoring the situation and in contact with relevant stakeholders, without providing further details. A spokesman declined to say whether Nexperia is part of the company's network of suppliers.
Volkswagen stated that its production was not affected and that it is in contact with interested parties to respond to any risks, if necessary.
Nexperia said on Tuesday it wants to hold talks on export restrictions from China and the United States. It also announced that a new interim CEO had been appointed.
Former CEO Zhang Xuezheng was fired following a Dutch court order after the United States put pressure on the company, court documents show.
The Dutch government announced on Sunday that it had taken control of Nexperia, citing concerns about a possible technology transfer to its Chinese parent Wingtech.
The government's statement said the “totally exceptional” measure was taken after the ministry observed “recent and acute signs of serious deficiencies in governance and actions” within Nexperia. “These signals represented a threat to the continuity and protection on Dutch and European territory of essential technological knowledge and capabilities. The loss of these capabilities could represent a risk to the economic security of the Netherlands and Europe,” reads the statement, which identifies the automotive sector as particularly vulnerable.
Nexperia chips are not technically sophisticated, but they are needed in large quantities. The company's largest manufacturing facility is in Hamburg, Germany, but most of its chips are packaged and assembled inside larger products in China.
