The shortage of chips in the European automotive industry has become critical: conveyors are on the verge of stopping – ACEA

The European Automobile Manufacturers' Association (ACEA) on Wednesday warned of the threat of a production shutdown due to a shortage of basic chips that are critical to automotive production.

The crisis situation was caused by a political conflict between the Netherlands and China over the company Nexperia .

Nexperia, which produces the simplest chips for the automotive and electronics industries, is headquartered in Nijmegen in the eastern Netherlands, but the company is owned by China's Wingtech Technology. Nexperia is one of the world's largest manufacturers of diodes and transistors.

on September 30, the Dutch authorities took it under state control over fears of technology leakage, and China responded by imposing export restrictions on the chips.

As a result, automakers around the world, including Europe, are facing an acute shortage of chips.

"The industry is operating thanks to reserve stocks, but they are rapidly depleting. According to a survey of our members this week, some are already expecting the lines to shut down soon. Alternative suppliers do exist, but it will take months before they can ramp up additional capacity and make up for the shortfall. The automotive industry does not have that much time – the effects of the shortage will be felt very soon," ACEA said in a statement .

ACEA Director General calls on all parties to the conflict to step up efforts to find a diplomatic solution.

• Earlier in October, it was reported that weak demand for cars and the expansion of Chinese brands into the European market could lead to the closure of eight plants in Europe .