German industry faces Chinese competition while courting Japan to diversify chip supply

German manufacturers are feeling pressure from Chinese rivals entering the European market, prompting major firms such as Volkswagen to cut 50,000 jobs and prompting planned layoffs at BMW and Bosch. In response, Jungheinrich AG has teamed with EP Equipment to launch the budget-friendly AntOn forklift. At the same time, German semiconductor leaders are urging deeper cooperation with Japan, with Carl Zeiss AG’s Frank Rohmund saying Japan, South Korea and the United States are essential partners and outlining steps to reduce exposure to Chinese risk. Zeiss supplies key components to ASML, while Japan’s Rapidus also produces lithography machines, and the construction of TSMC’s first European plant in Dresden has led Nippon Express to open a nearby logistics facility.