Luxembourg manufacturers are beginning to feel the effects of renewed global tensions over semiconductor chips, the country’s industry lobby group has said, as a dispute between the Netherlands and China sparks fears of shortages across Europe.
On Sunday, the Dutch government announced it had taken control of Nexperia, a chipmaker based in Nijmegen but owned by a Chinese company, citing national security concerns and Europe’s technological dependence on China.
Dutch government takes control of Chinese-owned chipmaker Nexperia
Beijing condemned the move as “economic banditry” and responded by banning exports of Nexperia products, as well as key intermediate components and rare metals used in chip production.
The fallout from the dispute is being felt most acutely in Europe’s automotive and electronics industries, with Luxembourg companies also affected.
Fedil warns of supply risks
The industry lobby federation Fedil said on Friday it was “concerned about impending disruptions in the semiconductor supply chain” and warned that Luxembourg companies could face significant challenges if the situation persists.
“A disruption in the supply chain could jeopardise production continuity, compliance with contractual obligations and, in the short term, jobs,” the group said in a press release.
Fedil added that Europe’s dependence on a small number of non-European suppliers made its industries particularly vulnerable to export bans and geopolitical shocks.
The association has urged the government to work closely with the European Commission and other member states to help assess the impact of the shortages and coordinate possible emergency measures.
It also called for a faster rollout of the European Chips Act, the EU’s initiative to boost domestic semiconductor production and reduce strategic dependence on external suppliers.
“Diversifying supply sources and building partnerships with reliable actors must become a priority,” Fedil said.
(This article was originally published by the Luxemburger Wort. Machine translated using AI, with editing and adaptation by Kabir Agarwal)
