China's Nexperia Ban Puts Bosch, European Auto Production at Risk

German car parts giant Bosch is preparing to furlough staff at its Salzgitter plant due to a trade dispute between China and the Netherlands over Dutch chipmaker Nexperia.

China has banned the export of Nexperia’s finished products chips widely used in car parts in retaliation for the Netherlands seizing control of the company. Nexperia's Chinese owner, Wingtech, has been flagged by the U.S. as a potential national security risk.

Bosch, which manufactures motor control units at the Salzgitter plant, confirmed it is preparing potential furlough measures if the situation isn't resolved soon. This standoff risks compounding problems for Europe's auto sector, already grappling with U.S. tariffs and Chinese rare-earth curbs.

Volkswagen has temporarily secured production for the coming week but acknowledged that "short-term impacts" on its production network cannot be ruled out due to the dynamic situation.