Tokyo: Japanese automakers are facing the risk of production delays after a Dutch semiconductor company warned that it may not be able to deliver critical chips on schedule. The Japan Automobile Manufacturers Association (JAMA) said the affected chips are used in electronic control units (ECUs), which control vital vehicle functions including engine management, braking systems, and safety features.

The alert underscores ongoing vulnerabilities in the global automotive supply chain, where many manufacturers operate on just-in-time production models. A shortage of these chips could disrupt vehicle assembly lines, not just in Japan but worldwide, given the interlinked nature of modern manufacturing.

The supply risk is linked to Nexperia, a Dutch chipmaker recently taken over by the Netherlands on September 30 over concerns that its Chinese parent company, Wingtech Technology Co., might access sensitive semiconductor technology. In response, China has restricted exports of certain finished components and sub-assemblies, complicating Nexperia’s ability to meet global demand.

The automotive industry has faced repeated semiconductor shortages since the COVID-19 pandemic, which caused factory shutdowns and a surge in demand for electronic components. Modern vehicles rely on hundreds of chips for critical operations, meaning any supply disruption can have widespread consequences.

Japanese automakers are reportedly exploring alternative suppliers and increasing stockpiles of key components to mitigate potential production risks. Industry experts warn that prolonged disruptions could affect vehicle availability, delay new launches, and impact company revenues.

“This situation highlights the fragility of the global supply chain for semiconductors,” said an industry analyst. “Even a single supplier’s challenges can ripple through the entire automotive sector.”

Automakers and suppliers are holding urgent discussions to address the situation and ensure production continuity, as the global automotive industry braces for possible disruptions in the weeks ahead.