The European Automobile Manufacturers’ Association (ACEA) on Thursday expressed serious concern over potential major disruptions to European vehicle production if the ongoing shortage of Nexperia chips is not swiftly resolved.

According to ACEA, on October 10, carmakers and their suppliers received notices from Nexperia detailing events that will prevent the company from guaranteeing timely delivery of its semiconductors to the automotive supply chain. Nexperia is a high-volume supplier of chips commonly used in vehicle electronic control units.

The association warned that without these chips, European suppliers cannot manufacture the necessary parts and components for automakers, putting production at risk. While alternative sources exist, qualifying new suppliers for specific components and ramping up production could take several months. Current inventories of Nexperia chips are expected to last only a few weeks, ACEA said.