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Global Chip Shortage 2025: How the Nexperia Crisis Hits Car Prices

Blue car on a semi-conductor chip symbolizing automotive industry chip crisis.
The Auto Industry’s Favorite Drama: Another Chip Shortage

Just when you thought the world had recovered from the Great Chip Shortage of 2021–2023, here we go again. The auto industry’s nerves are fried once more, thanks to another global spat over... yep, semiconductors! Welcome to the 2025 chip shortage. This time, it’s not a pandemic or a boat stuck in a canal causing chaos. It’s politics. Because of course it is.


Here’s the CliffsNotes version: a Dutch company called Nexperia makes those unsexy little chips that run all the boring-but-important stuff in your car, like power windows, headlights, and windshield wipers. They’re not the fancy computer chips that power your infotainment system or lane-keeping features. They’re the “just make the car go” chips. The ones no one notices until they’re gone.


The Dutch government decided to seize control of Nexperia in late September, claiming “national security concerns” because it’s owned by a Chinese company called Wingtech. China, not exactly known for reacting calmly, threw a diplomatic tantrum and banned Nexperia from exporting chips from its Chinese plants. Cue the collective facepalm from automakers worldwide.


How the Nexperia Chip Crisis Is Disrupting Car Production

Within days, Honda was slowing production across North America, Nissan had to pause its Tennessee assembly lines, and Volkswagen was sweating bullets trying to keep its factories running. Even Ford and Stellantis were still reeling from an aluminum supplier fire, and now this. As one supplier bluntly put it, “A handful of these chips can literally stop production of a full assembly plant.” Translation: a $3 transistor can hold up a $50,000 SUV.


Thankfully, there’s been a little movement. After a tense summit between Trump and Xi Jinping (because apparently we’re back in 2019), the U.S. and China reached a deal that lets Nexperia start shipping again—sort of. China says companies “can apply” for exemptions. Sounds great, right? Except no one knows when, how, or who gets approved. So, yeah. Crisis “eased,” but not fixed.


What the New Chip Shortage Means for Car Buyers and Owners

For car buyers and owners, this is where the pain comes in.


If you’re shopping for a new car: Don’t expect big discounts anytime soon. If chip shipments get delayed again, automakers will crank out fewer vehicles and protect their profit margins. Fewer cars = less negotiating power for you.


If you’re buying used: Remember how used car prices skyrocketed during the last chip shortage? Get ready for déjà vu if production slows again.


If you already own a car: Replacement parts could get pricier and harder to find. If a simple chip inside a sensor or module is backordered, your car could be sitting in the shop for weeks.


Why the Auto Industry Never Learns

The frustrating part is that the industry swore it learned its lesson after the last chip crisis. They talked about “diversifying supply chains” and “dual sourcing.” And yet, here we are, held hostage again by one supplier’s political drama. It’s like watching someone touch a hot stove twice because they wanted to make sure it was really hot.

So, what should you do?


  • If you’ve been waiting to buy, don’t wait for prices to magically drop. Between chip issues, rising destination fees, and tariffs creeping into everything, cars aren’t getting cheaper.

  • If you own a newer vehicle, take good care of it. Basic maintenance now could save you from waiting months for a part later.

  • And if you hear your dealer blame “supply chain issues” for delays or markups, well… they’re not wrong this time. They’re just really happy to have someone else to blame.


The Bottom Line: Tiny Chips, Big Headaches

The global chip shortage sequel may not hit quite as hard as the first one, but it’s already messing with production, pricing, and patience. Stay alert, stay savvy, and remember - sometimes the smallest parts cause the biggest headaches.


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