Seized chip company races to split from China as car industry crisis looms

Core Insights - Volkswagen has indicated that its profit targets are at risk due to supply disruptions caused by a trade embargo from Beijing, affecting the availability of critical chips for car production [1][8] - Nexperia, a chip manufacturer recently taken over by the Dutch government, is planning to double its production capacity in Malaysia to mitigate the impact of the embargo [3][9] Group 1: Company Developments - Nexperia's chips are essential for car production, with 80% of them being finished in China, and the blockade of these chips poses a significant threat to the automotive industry [2][7] - The company aims to increase the capacity of its facility in Seremban, Malaysia, over the next eight months, although this may not resolve immediate supply issues [3][9] - Following the Dutch government's seizure of Nexperia, there has been a diplomatic conflict with China, as the former owner Wingtech claims the company faces an "existential threat" [4][6] Group 2: Industry Impact - Carmakers, including Honda and Volkswagen, are experiencing severe disruptions, with Honda suspending some production lines and Volkswagen warning of potential profit losses [8] - Bosch, a key supplier in the automotive sector, has indicated it may need to furlough staff if the supply situation does not improve [8] - The Society of Motor Manufacturers and Traders in Britain has expressed concerns that without swift governmental action, vehicle production could face imminent severe disruptions [9]