A slowing of production by Volkswagen of the Golf and Tiguan models this week is giving rise to more concern over the dangers of a supply chain shock arising from a shortage of chips from a key supplier in the Netherlands.

The German Bild newspaper – citing supplier industry sources – reported that the VW production pause this week is related to chip supply issues.

VW has denied media reports of a chips shortage cause for the production pause and suggested that the adjustment was long planned to account for seasonal inventory trends. Moreover, VW says the production pause will be over by the end of this week.

The Dutch government has imposed emergency governance measures on China-owned (Wingtech) semiconductor maker Nexperia, which has led to the Chinese government banning exports of the company’s finished – semiconductor – products, which are widely used in Europe’s auto industry.

MORE: European vehicle production at risk after Nexperia governance dispute

The European Automobile Manufacturers’ Association (ACEA) has warned that Nexperia is a high-volume supplier of components widely used in electronic control units and other vehicle electrical systems.

Although alternative chips are available from other suppliers, re-homologation and ramp-up would take several months, ACEA said, adding that existing stocks of Nexperia components may run out within weeks.

ACEA director general Sigrid de Vries said: “Automakers have taken steps over the last years to diversify supply chains but risk cannot be mitigated down to zero. This is a cross-industry issue affecting a large number of suppliers and virtually all of our members.

“We suddenly find ourselves in this alarming situation. We really need quick and pragmatic solutions from all countries involved.”