The chip manufacturer Nexperia is currently not allowed to export from China. The overview of key questions and answers has now been updated. The focus of this update is on measures that have been initiated to cusion additional cost burdens.

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Status: 30 October 2025, 13:30 AM (This overview will be updated as developments evolve)

Note: This Q&A catalog contains information intended exclusively for internal use. External publication or distribution is not permitted.

Who is Nexperia and what role does the company play in the automotive industry?

Nexperia is a manufacturer of various semiconductors headquartered in the Netherlands. Since 2019, Nexperia (formerly part of NXP Semiconductors) has been majority-owned by the Chinese company Wingtech Technologies. With over 100 billion components produced annually, Nexperia is a leading supplier of basic semiconductors such as transistors and diodes.

Approximately 70 percent of Nexperia’s finished products are manufactured in China. Nexperia plays a crucial role in the automotive industry, supplying a wide range of electronic components to many automotive suppliers, including FORVIA HELLA. These components are used in sensors and control units for engines, transmissions, brakes, and airbags. As a result, Nexperia chips are installed hundreds of times in each vehicle, and their semiconductors are also relevant for other industries.

Like many other automotive suppliers worldwide, FORVIA HELLA sources electronic components from Nexperia for all its business groups. Nexperia components are used in a wide range of control units, including those for radar, steering electronics, energy management and lighting technologies.

What direct consequences could affect FORVIA HELLA?

The current situation is being continuously monitored and assessed. At present, it remains difficult to reliably estimate the full extent of the potential impacts. However, we are already observing, for example, that manufacturers are partially reducing their call-off figures. In addition, it is still unclear whether and when a possible solution might be found at the political level, which could result in the restrictions being lifted. It should also be noted that even in the event of a swift political agreement, it would take some time to resolve the supply bottlenecks that have already arisen. Accordingly, a certain negative impact on our business is to be expected.

If supply bottlenecks occur, this could impair the production and delivery capability of FORVIA HELLA. At present, FORVIA HELLA is still able to meet its delivery obligations to customers. At the same time, the various necessary alternative strategies are already leading to increased costs: due to higher prices as a result of shortages in the market, but also due to the required qualification of alternative semiconductors and the need for special freight.

To what extent are the Lighting and Lifecycle Solutions business groups affected, in addition to Electronics?

While the precise scope of conceivable direct and indirect effects (see question below) remains difficult to quantify at this point in time, any potential disruption in semiconductor supply would likely have broad implications across the automotive sector. If such a shortage were to occur, it would likely affect both the Lighting and Electronics businesses of FORVIA HELLA. The commercial vehicle business within Lifecycle Solutions would also be affected, albeit to a lesser extent.

What indirect risks exist for FORVIA HELLA?

Indirectly, FORVIA HELLA faces the risk that, due to shortages among other suppliers, significantly fewer vehicles will be produced, leading automotive manufacturers to order fewer products from FORVIA HELLA. Given the highly complex and dynamic nature of the situation, it is currently impossible to predict whether, and to what extent, there will be significant impacts on global vehicle production.

How is FORVIA HELLA responding?

FORVIA HELLA has proactively and at an early stage established cross-functional task forces consisting of around 100 involved employees from various business groups and functions to closely monitor the supply chains and implement measures to mitigate risks. These measures include, among others, local-for-local solutions within China, the production of semi-finished or finished products in China and their subsequent export (which is currently not subject to export restrictions), as well as, where possible, the use of alternative sources of supply. However, this is associated with significant additional financial expenditure.

To cushion this as effectively as possible, measures for cost management are being further intensified. This means, firstly: The existing restriction on travel, training, and consulting services exclusively for customer-relevant and business-critical purposes remains in place. Secondly, the Management Board has additionally decided to suspend all procurement processes in indirect purchasing (Indirect Purchasing refers to the procurement of any goods and services not directly used in the manufacture of a product) until further notice. The only exceptions are procurement projects that are absolutely necessary to maintain business operations or for safety and compliance purposes. In addition, approval limits for indirect purchasing will be adjusted in accordance with the management decision. (Note: The subsidy for team events at German locations of up to 30 euros per participant and calendar year remains unaffected by this.) Thirdly, any necessary measures at the plants, as well as in the business groups and central functions, will continue to be reviewed as required by the situation in order to cushion possible significant fluctuations in customer call-offs.

In the medium term, changes in product design could also help to mitigate potential shortages – however, these require a certain lead time. In managing the company through the current challenges, the experience that FORVIA HELLA gained during the coronavirus pandemic and the semiconductor crisis in 2022 is also proving valuable, as there were already significant supply bottlenecks in the supply chain at that time due to a lack of semiconductors and other electrical components.

Why is Nexperia subject to export restrictions?

FORVIA HELLA is not in a position to fully assess the background to the recent export restrictions affecting Nexperia. Overall, these measures must be viewed in the context of various trade restrictions that have, in some cases, further intensified in recent months. Manufacturers and suppliers alike have been informed by Nexperia of the imposed export restrictions on 10 October.