Stellantis supplier seeks court order to compel chip supply for Jeep plant


FILE PHOTO: A man works on a tent for NXP Semiconductors in preparation for the 2015 International Consumer Electronics Show (CES) at Las Vegas Convention Center in Las Vegas, Nevada, U.S. on January 4, 2015. REUTERS/Steve Marcus/File Photo

(Reuters) -A federal judge in Michigan will hear arguments on Friday on whether to issue an emergency order forcing NXP Semiconductors to provide chips to a supplier of automaker Stellantis.

The global automotive chip crunch started late last year, when automakers and their suppliers failed to understand they needed to put in orders months ahead of time as the consumer electronics industry surged and took up chipmaking capacity. Then this year, a series of natural disasters at automotive chip plants deepened the shortage; NXP cites weather-related issues in Texas in the dispute with JVIS.

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