Bosch has run into serious disruptions at three European production sites, even as there are signs the trade dispute surrounding chip supplier Nexperia may be easing. The company confirmed ongoing issues at its plants in Ansbach and Salzgitter in Germany, as well as at the large manufacturing hub in Braga, Portugal.

The chip shortage has thrown assembly schedules off balance: Bosch is cutting shifts and sending staff on temporary leave. In Germany, up to 400 employees in Salzgitter and around 650 in Ansbach have been moved to reduced-hours arrangements. In Braga the scale is larger, with temporary cuts to working time affecting about 2,500 of 3,300 employees. The ripple effect is a stark reminder that even basic semiconductors can become single points of failure for modern vehicle electronics.

The turmoil stems from a dispute between China and the Netherlands after Dutch authorities placed Nexperia under state control over concerns about technology transfers. China responded by restricting the company’s exports, a move that immediately hit the auto industry: Nexperia’s simple chips are used across virtually all electronic systems in cars. It’s a clear example of how geopolitics travels quickly from ministries to the factory floor.

Bosch says it is doing everything possible to limit disruption for customers and is closely tracking political talks. This week, a delegation from the Dutch Ministry of Economic Affairs is heading to Beijing to seek a compromise. A workable deal would ease pressure on production lines, but until that happens, manufacturers will be working around tight parts availability.