On Wednesday, Volkswagen, the renowned German automobile manufacturer, issued a warning about potential temporary disruptions in production. This caution is attributed to China’s export limitations on semiconductors produced by Nexperia.

This announcement follows a statement from the German Association of the Automotive Industry (VDA). The prominent car industry lobby in Germany highlighted that the ongoing trade conflict between China and the Netherlands concerning Nexperia could cause “significant production restrictions in the near future” unless the chip supply issue is promptly addressed.

A Volkswagen representative communicated with CNBC via email, clarifying that although Nexperia does not supply Volkswagen directly, some of their components are used within the vehicle parts provided by Volkswagen’s direct suppliers.

“We are maintaining close communication with all key stakeholders to identify any potential risks early on and to enable informed decisions regarding necessary actions,” a Volkswagen spokesperson stated, emphasizing that the company’s production remains uninterrupted at present.

“However, given the evolving circumstances, short-term effects on production cannot be ruled out,” they added.

Shares of Volkswagen traded 2.2% lower at 2 p.m. London time (9 a.m. ET).

Last month, the Dutch government took control of Nexperia, a Chinese-owned semiconductor maker based in the Netherlands, in what was seen as a highly unusual move.

The Dutch government seized control of the company, which specializes in the high-volume production of chips used in automotive, consumer electronics and other industries, citing fears the firm’s tech “would become unavailable in an emergency.”

China responded by blocking exports of the firm’s finished products, sparking alarm among Europe’s auto industry.

A spokesperson for Germany’s Economy Ministry said the government is concerned about chip supply chain difficulties, according to Reuters.

— CNBC’s Dylan Butts contributed to this report.