The NEXPERIA Crisis: The Outbreak of the Crisis and the Global Shockwave

I. The NEXPERIA Crisis: The Outbreak and Global Impact
NEXPERIA's factories in China exported all of their chip products, resulting in the complete shutdown of 34% of its global packaging and testing capacity. 
The automotive industry chain has entered an emergency state. 
The Honda factory in Canada will reduce production by 50% starting from October 27th, and will completely shut down for a week starting from the 30th.
The main production lines of Volkswagen's German factories (Golf, Tiguan) have come to a standstill, and the ID series is facing a risk of a 30,000 vehicle production cut.
The CEO of Volvo warned that although the ASIC chips are not high-end, the shortage will directly paralyze the entire vehicle production.
Price surge and supply shortage
The price of the alternative NEXPERIA automotive chips has soared by nearly ten times. Feedback from Dongguan enterprises indicates that there is panic buying in the market. A Barclays report states that the inventory of some suppliers will be exhausted within a few days. 
II. Root Cause of the Crisis: Irreplaceable Hidden Champions
The strategic position of NEXPERIA
As the world's largest supplier of automotive-grade basic chips, NEXPERIA has an annual production capacity of over 50 billion chips, serving 25,000 customers. The automotive industry accounts for 60% of its revenue. 23 Its chips are widely used in key modules such as air conditioning control and lock control systems. 
The fatal bottleneck of the pre-release production capacity
70% of NEXPERIA's pre-release production capacity relies on the factory in Dongguan, China. Competitors such as ST (Shenzhen) and Infineon (Malaysia) cannot fill the gap in the short term. 3. The Dutch company NEXPERIA has reduced the wafer supply to the Dongguan factory, forcing the production capacity to be reduced to "four out of every three days off". 4. Wafer foundry services 
III. Breakthrough Solution: Dual-track System of Spot Reserve and Alternatives
(1) Emergency Supply of Original Factory Products from NEXPERIA
At present, our company has the following scarce resources in stock:
✅ Full range of MCU/PMIC/logic devices in stock
✅ Capable of providing automotive-grade AEC-Q101/AEC-Q100 certified models
✅ Can provide EU origin certificates to avoid compliance risks 

Case: A German Tier 1 supplier obtained 100,000 units of the urgently needed PSMN1R4-40YLDX (vehicle-mounted MOSFET) through our company's channel within 48 hours, preventing the production line from coming to a halt.

IV. Action Suggestions: Build Resilient Supply Chains
Emergency Replenishment Window Period
The inventories of European automakers are generally only sufficient for 2-3 weeks. It is recommended to secure the spot market within 72 hours and prioritize the production of core models. 
Replacement Product Verification Acceleration Program
Open application for free samples and offer 48-hour rapid testing service, providing compatibility report templates. 
Medium and long-term dual-supply solution
The leading internal testing company in the United Nations has established a "chip design - wafer fabrication - testing" security triangle to avoid geopolitical risks. 
Industry warning: The German VDMA has warned that the crisis will spread to the construction machinery sector. It is recommended that non-automotive customers also activate their contingency plans. 
In this chip crisis triggered by political games, passively waiting will cost enterprises a daily production halt cost of 40 million euros. Through the construction of a three-dimensional system consisting of spot channels, alternative solutions, and strategic reserves, we have helped 12 customers achieve seamless supply chain switching. Contact us immediately to obtain the "List of Severe Shortages of ON Semiconductor" and the "White Paper on Automotive Grade Alternatives", and seize the 48-hour golden replenishment period.