BMW says supplier network hit by dispute over chipmaker Nexperia

By Rachel More BERLIN (Reuters) -German automaker BMW said on Thursday that parts of its supplier network were being affected by a trade and intellectual property dispute over chipmaker Nexperia, which faces export restrictions in both the U.S. and China. Netherlands-based Nexperia, one of the largest makers of basic chips used in cars and consumer electronics, is caught up in a trade war between the world's two biggest economies, with U.S. President Donald Trump ratcheting up pressure on tech as China curbs rare earth exports. The troubles at Nexperia have raised concerns over possible knock-on effects for Europe's automotive sector, with carmakers and their suppliers already battling tariffs, foreign competition and weak demand. BMW SAYS PRODUCTION CONTINUES AS PLANNED "Parts of our supplier network are affected," a BMW spokesperson told Reuters when asked about the issue. "We are in close contact with our suppliers and continuously assess the situation in order to identify potential supply risks at an early stage and take appropriate measures if necessary," the spokesperson said in an emailed statement. Production continues at BMW's plants as planned, he added, without giving details on the supplier problems. Mercedes-Benz said it was monitoring the situation and in touch with relevant stakeholders, without giving further details. A spokesperson declined to say whether Nexperia was part of the company's supplier network. Volkswagen said its production was unaffected and that it was in contact with stakeholders in order to respond to any risks if necessary. Nexperia said on Tuesday it was seeking talks over the export restrictions in China and the United States. It also said a new interim CEO had been put in place. Former CEO Zhang Xuezheng was removed on a Dutch court order after U.S. pressure on the company, according to a court ruling. The Dutch government said on Sunday it had taken control of Nexperia, citing worries about the possible transfer of technology to its Chinese parent company, Wingtech. Nexperia chips are not technically sophisticated but are needed in large volumes. Its biggest manufacturing site is in Hamburg, Germany, but most of its chips are packaged and assembled into larger products in China. (Reporting by Rachel More in Berlin. Editing by Matthias Williams and Mark Potter)

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