The automotive supplier ZF Friedrichshafen is preparing to implement short-time work measures at several of its locations, a move prompted by critical supply chain disruptions stemming from the chip manufacturer Nexperia. The company has already informed employment agencies, confirming reports initially published in the Frankfurter Allgemeine Zeitung. While the precise number of employees potentially affected remains undisclosed, ZF characterizes the impact as “currently manageable.
The situation underscores a broader fragility within the European automotive sector and highlights the complications arising from foreign ownership and geopolitical tensions. Nexperia, headquartered in Nijmegen, Netherlands, operates under Chinese ownership and is a vital supplier of chips indispensable to the auto industry and other sectors.
Earlier this year, the Dutch government intervened in Nexperia’s operations with a controversial emergency decree, citing concerns over mismanagement and the potential for the transfer of critical technology and production capabilities to China. This intervention triggered retaliatory export restrictions imposed by the Chinese government on semiconductors crucial to Nexperia’s production processes within the country.
The current crisis centers on Nexperia’s suspension of the supply of semi-finished products destined for further processing in its Chinese facilities, effectively halting a key link in the European automotive supply chain. This demonstrates the precariousness of dependency on foreign-controlled entities for essential components and reignites the debate surrounding economic security and strategic autonomy within the European Union.
Analysts suggest the incident is likely to intensify pressure on European policymakers to bolster domestic semiconductor production and diversify supply chains, reducing vulnerability to political interference and disruptions originating from overseas. The ZF situation serves as a potent reminder of the interconnectedness of global economies and the potential for geopolitical decisions to dramatically impact industrial production and employment across Europe.
