When the Netherlands nationalised the company Nexperia and its Chinese subsidiaries retaliated by halting semiconductor exports, Europe’s automotive industry felt its vulnerability in full. Groups such as Volkswagen, BMW and Stellantis were forced to curb production. The reason, however, was not the most advanced 3-nanometre processors for artificial intelligence that dominate the headlines of tech magazines. Production was paralysed by the shortage of inconspicuous electronic components manufactured in 28- to 22-nanometre technology – chips the semiconductor industry labels as “outdated”. While the attention of the media and investors is focused on the smallest transistors and the most powerful AI accelerators,…
When the Netherlands nationalised the company Nexperia and its Chinese subsidiaries retaliated by halting semiconductor exports, Europe’s automotive industry felt its vulnerability in full. Groups such as Volkswagen, BMW and Stellantis were forced to curb production. The reason, however, was not the most advanced 3-nanometre processors for artificial intelligence that dominate the headlines of tech magazines. Production was paralysed by the shortage of inconspicuous electronic components manufactured in 28- to 22-nanometre technology – chips the semiconductor industry labels as “outdated”.
While the attention of the media and investors is focused on the smallest transistors and the most powerful AI accelerators, the real economy rests on a different foundation. A modern electric vehicle contains thousands of semiconductor components that control everything from battery charging and climate control to safety systems.
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