AI boom squeezes auto chips: Nexperia sold out, STMicroelectronics warns of bottlenecks

The AI boom is squeezing the supply of automotive chips. Stefan Tilger, interim CEO of Dutch chipmaker Nexperia, told Reuters at the Electronica trade fair in Munich on November 10 that the company is 'totally oversubscribed', with some competitors shifting capacity away from the commodity semiconductors Nexperia supplies and creating bottlenecks in parts of the automotive supply chain.

'The automotive industry is suffering quite heavily'

Tilger said demand from AI data centres and robotics is absorbing capacity, while investment in the mature technologies used to make diodes, transistors and other basic components has lagged for years. 'The automotive industry is suffering at the moment quite heavily,' he said. Nexperia specialises in high-volume, low-cost semiconductors used mainly in vehicles and industrial equipment.

STMicroelectronics warned a day earlier

STMicroelectronics CEO Jean-Marc Chery warned a day earlier that foundries and chip-packaging companies were increasingly shifting resources away from automotive and industrial applications. STMicroelectronics raised its forecast for AI data centre revenue in 2026 to about $1.3 billion on October 29. The two warnings highlight growing competition for production capacity between the AI boom and sectors that rely on less advanced, mature chips.

Background: Nexperia ownership dispute unresolved

Nexperia's tight supply has a second cause: the Dutch government seized control of the company on September 30, 2025, citing national security, and suspended the voting rights of its Chinese owner Wingtech; China then restricted exports of finished components from its Dongguan plant. Honda has said the disruption is expected to cost it roughly 110,000 vehicles of lost production. The dispute remains unresolved, and Nexperia plans to spend $260 million expanding packaging capacity in Malaysia to serve customers outside China.

Sources: Reuters (November 10, 2026); STMicroelectronics; Nexperia.