Nexperia Warns of Auto Chip Bottlenecks as Capacity Shifts to AI Data Centers
Key Facts
Executives at Nexperia and STMicroelectronics warned that accelerating demand from AI data centers is redirecting chip manufacturing capacity away from components used in autos and industry, creating bottlenecks in parts of the automotive supply chain. Nexperia interim CEO Stefan Tilger told Reuters at the Electronica trade fair in Munich on November 10 that the company is "completely sold out on bookings." He added that suppliers are shifting manufacturing capacity to data centers at the expense of mature chips used in vehicles and industrial equipment. A day earlier, STMicroelectronics CEO Jean-Marc Chery warned that foundries and chip packaging companies were moving resources away from automotive and industrial applications. The comments highlight growing competition for production capacity between the AI boom and sectors that rely on less technologically advanced basic components.
Tilger said some competitors had moved production capacity away from the commodity semiconductors supplied by Nexperia, creating bottlenecks in parts of the automotive supply chain. He described the industry’s position as difficult, saying "the automotive industry is suffering severely right now." The problem, in his view, lies in manufacturing capacity shifting to other orders while investment in technologies that produce basic components remains limited. These components include diodes, transistors and other elements used in vehicle systems and industrial equipment. That means rising demand for AI chips could put pressure on the availability of components different from the advanced processors that typically draw attention during the data center boom.
Tilger said demand from AI data centers and robotics is absorbing capacity, while investment in mature technologies used to produce diodes, transistors and other basic components has lagged for years. Chery, in turn, said some foundries and assembly and packaging companies that had served a broad customer base were "withdrawing from mainstream technologies." The comments point to the effect of resources shifting on products that may not be at the heart of the advanced chip boom but remain essential to broad swaths of industry. Autos and industrial equipment depend on a steady supply of these components, so capacity shortages can affect parts of the supply chain even as production of AI chips continues to grow. Nexperia describes itself in this context as a specialist in low-cost, high-volume semiconductors used mainly in vehicles and industrial equipment.
Nexperia’s business mix differs from that of larger companies such as STMicroelectronics, with its scope more narrowly focused on components made on mature nodes. ST, meanwhile, has some protection against supply constraints through its manufacturing footprint, Chery said. "We control part of our future through our capital spending and manufacturing," he added. This suggests that in-house manufacturing capabilities give the company some control over meeting its needs, but do not eliminate the constraints facing suppliers across the broader market. That partial protection comes as autos, industry and data centers compete for shared manufacturing and packaging resources, according to the warnings reported by Reuters.
At the same time, data centers represent a growth opportunity for STMicroelectronics, as well as a source of demand that is helping to redistribute capacity. On October 29, the company raised its forecast for AI data center revenue in 2026 to about $1.3 billion, from its July forecast of more than $1 billion. It maintained its target of generating more than $2 billion in revenue in 2027. Chery told analysts that demand for the company’s data center business is being driven mainly by production of silicon photonics chips, which carry data between servers using light instead of electrical signals. The forecasts show the scale of the opportunity the company is seeking to capture as it warns that the sector’s expansion is absorbing capacity previously available for other products.
STM shares closed at $44.54 on November 9, according to EL7 data, after closing at $48.54 on November 3, $45.60 on November 4, $39.95 on November 5 and $41.72 on November 6. These closing prices provide context for the stock’s movement in the days before the Reuters report published on November 10, without on their own establishing the effect of capacity shortage warnings on trading. Tilger’s comments came at the Electronica trade fair in Munich, which runs from November 10 to 13, 2026. The event continues on the day the report was published, while the two chipmakers’ messages focus on suppliers’ shift toward AI and robotics needs. The central concern in the warnings remains the availability of mature chips for vehicles and industry as that shift continues.