Intensifying disputes within one of Europe's largest chipmakers are unfolding as the automotive industry recovers from years of semiconductor supply instability, and these disputes could disrupt car production across the continent.
Amphenol Netherlands, headquartered in the Netherlands, suspended shipments of silicon wafers to its Chinese back-end factory in October. This internal supply cutoff stems from a decision by the Dutch government in October: taking control of the company, removing its CEO in China, and increasing oversight of operations. Officials cited "serious governance deficiencies" as the reason, but this action has damaged relations between Amphenol Semiconductor's European and Chinese business divisions. Car manufacturers have warned that inventory may run out within weeks, with potential consequences described as "highly destructive."
Executives from mainstream automakers and first-tier suppliers told the Financial Times that they have been "working around the clock" to find alternative supply sources. A source revealed that if Europe does not resume wafer supplies, China's inventory could be depleted by mid-December. The Chinese factory of Amphenol Semiconductor typically handles the final assembly and testing of most of the company's automotive chips, which are then sold globally.
Although China recently eased export controls on chip manufacturing equipment and materials, and some exports have resumed, this partial relaxation has not broken the deadlock. The European Automobile Manufacturers Association (ACEA), the main trade organization for the European automotive industry, stated that the issue is no longer regulatory but operational — Amphenol Netherlands has suspended direct supplies to China, citing financial misconduct by its subsidiary and refusal to comply with internal directives.
"We welcome the announcement from China to lift export restrictions," ACEA said in a statement. "But as long as wafer exports to China remain restricted, we cannot obtain enough chips to meet global demand. The direction is correct, but the issue remains unresolved." From the analysis of ACEA's statement, it appears that Amphenol Netherlands has not yet resumed wafer supplies to China.
The risks of this dispute should not be underestimated, as Amphenol Semiconductor does not produce high-performance processors or artificial intelligence chips, but rather supplies general-purpose discrete components, such as metal-oxide-semiconductor field-effect transistors (MOSFETs), electrostatic discharge (ESD) protection circuits, and small-signal logic devices. These chips have a wide range of applications, from airbag controllers to window switches, with unit prices often less than $1, but with huge demand, with some vehicles requiring dozens of them per circuit board.
Volkswagen said its German factories have not yet been affected, but the situation remains "dynamic and full of uncertainty." Other automakers have stated that their buffer inventories are only sufficient for a few weeks, urging Amphenol Semiconductor to resolve this deadlock internally.
Original article: https://www.toutiao.com/article/7572364216854692415/
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