OREANDA-NEWS German automaker Volkswagen is preparing its employees for a possible temporary suspension of production due to a shortage of Nexperia chips, the Bild newspaper reports, citing a letter from the carmaker's management that it has in its possession.

The reason for the shortage of chips was a dispute over the Nexperia chip manufacturer owned by the Chinese Wingtech concern, which the Dutch authorities had previously taken under control "under pressure from the United States." In response, China banned the export of parts from the country, and since then, chip production at Nexperia factories has been partially suspended.

"VW (Volkswagen - ed.) is preparing its employees for the temporary closure of factories. The management letter... says that production is currently not affected by the shortage of Nexperia chips. But "against the background of a dynamic situation, a short-term impact on production cannot be ruled out," the publication quotes excerpts from the letter.

The automaker confirmed in a letter that Nexperia can no longer guarantee semiconductor supplies. In the event of their termination, Volkswagen will be forced to reduce production. According to Bild, the management of the concern has already begun negotiations with employment agencies on the introduction of a shorter working day.
"This could affect several tens of thousands of employees," the newspaper writes.

On Tuesday, the Bild newspaper reported that Volkswagen is preparing to suspend production of Golf and Tiguan models at its head plant in Wolfsburg soon due to problems with semiconductor supplies by the Nexperia chip manufacturer.

Earlier, the Dutch government intervened in the activities of Nexperia, a chip manufacturer owned by the Chinese Wingtech concern, due to fears of losing a critical technological base in Europe. The measure was taken after reports of serious management irregularities in the company. After that, the CEO of Nexperia, based in Nijmegen, the Netherlands, Zhang Xuezheng, was removed from his position. Zhang Xuezheng's activities as CEO of Nexperia attracted the attention of the Dutch government, and the Cabinet of Ministers issued an emergency order against the company based on the Law on Accessibility of Goods. According to this order, Nexperia is prohibited for a year from moving company elements, firing current executives and making other decisions without direct authorization from the Dutch Cabinet. Such measures, as noted, are designed to protect the economic security of the Netherlands and Europe.

Dutch Economy Minister Vincent Carremans said that negotiations are underway with China over the restrictions imposed on the Nexperia chip manufacturer. The Netherlands hopes to secure the company's future in the kingdom.