Volkswagen warns of output stoppages amid Nexperia chip disruption

German auto giant Volkswagen on Wednesday warned of temporary production outages citing China’s export restrictions on semiconductors made by Nexperia.

The update comes shortly after the German Association of the Automotive Industry (VDA), the country’s main car industry lobby, said the China-Netherlands dispute over Nexperia could lead to “significant production restrictions in the near future” if the supply interruption of chips cannot be swiftly resolved.

A spokesperson for Volkswagen told CNBC by email that while Nexperia is not a direct supplier of the company, some Nexperia parts are used in its vehicle components, which are supplied by Volkswagen’s direct suppliers.

“We are in close contact with all relevant stakeholders in light of the current situation to identify potential risks at an early stage and to be able to make decisions regarding any necessary measures,” a Volkswagen spokesperson said, noting that the firm’s production is currently unaffected.

“However, given the evolving circumstances, short-term effects on production cannot be ruled out,” they added.

Shares of Volkswagen traded around 2% lower at 1:15 p.m. London time (8:15 a.m. ET).

Last month, the Dutch government took control of Nexperia, a Chinese-owned semiconductor maker based in the Netherlands, in what was seen as a highly unusual move.

The Dutch government seized control of the company, which specializes in the high-volume production of chips used in automotive, consumer electronics and other industries, citing fears the firm’s tech “would become unavailable in an emergency.”

China responded by blocking exports of the firm’s finished products, sparking alarm among Europe’s auto industry.

A spokesperson for Germany’s Economy Ministry said the government is concerned about chip supply chain difficulties, according to Reuters.

— CNBC’s Dylan Butts contributed to this report.