China confirms partial resumption of Nexperia chip exports to EU, easing automotive supply chain crisis that threatened production stoppages
BRUSSELS: Chinese authorities have confirmed a partial resumption of Nexperia chip exports to the European Union, easing a blockage that had alarmed carmakers.
The European Commission announced the development on Saturday following a dispute that erupted in September when the Dutch government took control of Nexperia.
China responded by banning re-exports of the firm’s chips, triggering warnings from automakers about potential production stoppages.
Beijing announced at the weekend it would exempt some chips from the export ban, reportedly part of a trade deal agreed by Presidents Xi Jinping and Donald Trump.
EU trade commissioner Maros Sefcovic welcomed “the confirmation provided today… regarding the further simplification of export procedures for Nexperia chips destined for EU and global clients”.
The exports will be permitted as long as the chips are exclusively for “civilian use”, Sefcovic added.
The measure takes effect immediately according to the commissioner.
Talks continue with China on establishing a “lasting, stable, predictable framework that ensure the full restoration of semiconductor flows”.
Germany’s Aumovio, a major automotive supplier, said Friday it had received permission from Chinese authorities to resume Nexperia chip exports.
The chips are manufactured in Europe but sent to China for finishing before being re-exported to clients in Europe and other markets.
Volkswagen, Europe’s largest carmaker, had warned of production stoppages if the crisis continued.
Smaller firms were reportedly preparing to reduce working hours due to the supply disruption.
The Netherlands cited national security concerns when taking control of Nexperia, accusing the firm’s CEO of mismanagement. – AFP
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