Overnight, global automakers scramble for chips; European car manufacturers face inventory shortages, with Chinese substitutes quietly rising to the occasion.

In the second half of 2025, a supply chain earthquake sweeping the global automotive industry suddenly struck. After the Netherlands announced the implementation of “national security measures” against Amphenol, European automakers relying on the company’s chips found themselves in unprecedented difficulties—within just one week, production lines of giants like Volkswagen in Germany, Honda in Japan, and Tesla halted one after another, with global car production cuts reaching 900,000 units.

The root cause of this crisis lies in the special status of a factory in Dongguan—responsible for 70% of global automotive-grade chip packaging and testing, equivalent to the “central nervous system” of the entire automotive electronic system. When supply was cut off, everyone from Volkswagen’s Wolfsburg plant in Germany to manufacturing bases in Japan, from Tesla’s Shanghai Gigafactory to parts factories in Italy, was experiencing the same nightmare.

Supply Chain Out of Control: European Car Manufacturers’ “Inventory Anxiety”

The chain reaction caused by the supply cut was more severe than anyone expected. Volkswagen’s Wolfsburg factory was forced to halt production within just three days, incurring direct economic losses of up to €1.2 billion; Honda Japan was forced to cut North American capacity by 15% to cope with chip shortages; Tesla’s Model Y production line in Shanghai also experienced a 48-hour shutdown.

Even more surprisingly, domestic Dutch companies were not spared. An NVH component factory in Eindhoven was forced to transfer 300 workers to the packaging department due to inability to obtain key chips. This forced capacity reallocation reflected the over-reliance of European automakers on a single supplier—decades of globalization and cost optimization had become a fatal vulnerability at this moment.

Stellantis, the automotive giant formed by the merger of Fiat and PSA, faced particular hardship. The company discovered that its chip inventory could only sustain two weeks of production. To keep the Brazilian factory running, they were forced to purchase used chips from Tata Group in India, which resulted in misjudgments in the Jeep Compass’s autonomous driving system—drawing a dangerous red line on the bottom line of vehicle safety.

Emergency Plans and “Decentralized Orders” Tactics

In response to the crisis, European automakers launched their respective contingency plans. BMW dispatched procurement teams directly to Shanghai, attempting to restore chip supply without involving political issues; Volkswagen initiated a “fragmented order” strategy, splitting the original consolidated orders placed with Amphenol into 1,000 small batches distributed to secondary suppliers.

However, these emergency measures also exposed another weakness in European automotive industry—lack of technical reserves among alternative suppliers. An Italian supplier, after receiving orders, failed to pass automotive-grade certification standards, ultimately delaying delivery of brake systems for the Audi A6 by several months. The existence of such certification barriers meant that even if European automakers wanted to quickly switch suppliers, they faced numerous technical hurdles.

China’s “72-Hour Commitment” Alternative Solution

Meanwhile, Chinese chip companies responded rapidly to fill the vacuum. After 48 hours of supply disruption, Amphenol China activated emergency plans: Shanghai DingTai Jiangxin’s 12-inch wafer fab entered overload production mode; Hangzhou Silan Micro’s IGBT module production line operated continuously for 24 hours; even Wentech’s Lingang wafer factory completed its startup half a year ahead of schedule.

The reason these domestic enterprises could respond so swiftly is that—over the past five years—they had gradually mastered Amphenol’s technical standards, but had not yet had the opportunity to demonstrate their capabilities. Now, that opportunity had finally arrived.

More noteworthy is Jiangsu Yancheng’s ongoing construction of a 50 billion yuan semiconductor industrial park. This park integrates the complete industry chain of chip design, manufacturing, and packaging/testing, aiming to become the world’s largest automotive-grade chip base. The park’s leader remarked: “As long as customers provide design drawings, we promise to complete chip customization within 72 hours.” Such efficiency amazed Bosch executives in Germany—“They make chips as easily as building cars.”

Technological Breakthroughs: From Catching Up to Surpassing

The chip shortage not only caused supply chain crises but also stimulated technological breakthroughs in China’s semiconductor industry. Amphenol China collaborated with Tsinghua University’s Microelectronics Research Institute to complete a breakthrough in silicon carbide (SiC) power device packaging technology over three years. In December 2025, the NIO ET9 equipped with domestically produced SiC modules set a new endurance record on the Nürburgring track, with real-world performance improving by 8% compared to the Dutch original.

This is not merely about catching up but achieving performance surpassing. What does this mean for the entire industry? It signifies that China is no longer just copying but innovating.

Strategically, control over rare earth resources is also crucial. Over 90% of the world’s rare earth permanent magnetic materials come from China, and these materials are vital for the production of Amphenol chips. In November 2025, China’s Ministry of Commerce reduced export quotas for heavy rare earths by 40%, directly causing maintenance issues for Dutch ASML’s lithography machines. Dutch media lamented: “We thought we controlled the lifeblood of the chip industry, but we forgot that China also holds the pricing power over even the most basic rare earth resources.”

Quiet Reshaping of the Global Landscape

The chain reaction triggered by the Amphenol incident far exceeded expectations. ON Semiconductor in the US suddenly announced shifting capacity from Mexico to China; Samsung Electronics in South Korea secretly engaged with BYD to explore contract manufacturing of automotive storage chips; even Russia’s MCST approached, hoping to develop vehicle MCUs based on ARM architecture.

Behind these changes lies a stark reality: the global automotive chip industry map is undergoing a fundamental reshaping. The latest data from January 2026 shows that China’s self-sufficiency rate in automotive chips has risen to 65%, while European automakers, overly dependent on outsourcing, have lost critical bargaining power in the global supply chain.

Three Key Time Points Will Decide the Future

The future will be shaped by three critical time points:

February 15, 2026, the EU will vote on whether to impose tariffs on Chinese automotive chips. If approved, it could trigger an escalation of trade conflicts among China, the US, and Europe.

March 20, 2026, the final hearing of Amphenol’s Dutch equity dispute will be held at The Hague International Commercial Court. This ruling will directly impact global corporate confidence in overseas investments.

April 10, 2026, the Shanghai International Automotive Chip Expo will release the performance indicators of the new generation silicon carbide modules. If they meet expectations, this could mean a complete overturning of the Dutch technological monopoly.

Formation of a New Pattern

Amphenol China’s team is preparing a “Global Supply Chain Restructuring Summit,” inviting non-Western companies like Tata Group from India and Kordsa from Turkey to join this camp. This “circuitous alliance” approach could fundamentally shake the carefully crafted US-led chip industry alliance.

From the historic factories along the Rhine to R&D labs by the Yangtze River, from decision-making in Munich boardrooms to innovations on Shenzhen production lines, a silent but far-reaching industry war is escalating.

While the Netherlands still relies on legal provisions and administrative orders to maintain technological dominance, Chinese companies have already built a new competitive moat through capacity, technological progress, and market scale. Those European engineers who once mocked China as “only capable of OEM assembly” now have to face a stark reality: in the borderless battlefield of chip technology, the true winners will always be those companies and nations that can uphold quality standards and dare to innovate continuously.