The Anshi incident affects the automotive industry, thousands of Bosch workers face work stoppages

The chip supply shortage caused by the Nexperia trade dispute remains a major challenge for the German automotive industry. Bosch said on the 18th that thousands of workers have faced work stoppages.

Reuters reported that Nexperia is a Chinese-owned Dutch chip manufacturer, and China and the Netherlands have been competing for control recently. The Dutch government sent a high-level delegation to Beijing this week to seek a compromise, and the outside world is hopeful that the stalemate between the two sides will be eased. Bosch said that its three major centers located in Ansbach, Salzgitter, Germany, and Braga in Portugal are facing interruptions in production operations.

Bosch stated, “We will continue to prioritize all possible factors that may serve our customers and avoid or minimize production constraints.”

Nexperia, headquartered in the Netherlands, has simple chip technology but is widely used in automotive electronic systems and other consumer products. Worried about technology outflow, the Dutch government took over the company in September, prompting China to restrict exports of the company's finished products, forcing major suppliers such as Bosch, Aumovio and ZF Friedrichshafen to find alternatives. China's Ministry of Commerce also exempted some suppliers from the export ban.

As supply shortages slow production, Bosch has sent workers home when necessary. The spokesperson said that temporary work suspension measures are currently being taken for 300 to 400 employees in Saskatchewan and about 650 employees in Ansbach as needed. Bosch has 1,300 employees in the former and 2,500 in the latter. The spokesman added that of the 3,300 employees at the Braga plant, about 2,500 are affected by temporary working hour adjustments or suspension of wages.

The German Automobile Industry Association (VDA) stated that the current situation is still serious. VDA General Manager Marcus Bollig pointed out, "It is too early to say that everything is normal. We cannot rule out that the supply chain will be more affected in a few weeks."