The White House is set to announce that Dutch chipmaker Nexperia’s Chinese plants will resume supplies. This is reported by a Reuters source. The Dutch government and Nexperia refuse to comment on the matter. But Germany welcomes signs of an improvement in the chip supply situation following China’s announcement that it will lift a ban on exports of Nexperia automotive components to Europe. Chips from Nexperia are essential for the automotive industry, their shortage threatens production. The resumption of supply would thus be a relief to many car manufacturers around the world who were threatened with production cuts.
“The latest news from China represents the first positive signs of an easing of tensions,” German Economy Ministry spokesman Robert Habeck told AFP. But he emphasized that a full assessment of the consequences of Beijing’s announcement on the partial relaxation of export restrictions on some electronic components is not yet possible at this stage.
The Netherlands said it remains in contact with Chinese authorities and international partners, according to Reuters. And that’s because “to work on a constructive solution that will rebalance the chip supply chain and be good for Nexperia and our economies.”
A spokesperson for Nexperia said it was “continually calling for the de-escalation of current events”.
Exceptions for chip exports
The Dutch government took control of Nexperia in October over concerns that the company would hand over key technologies to Chinese parent Wingtech. Beijing responded by blocking exports of Nexperia products from China.
The company produces large volumes of semiconductors in the Netherlands, which are widely used in automobiles and consumer electronics. About 70 percent of chips made in the Netherlands are packaged in China and sold mostly to distributors.
Automobile unions then warned that European suppliers could not produce the parts needed for the production of cars without these chips, so there was a risk of production shutdowns. China’s Ministry of Commerce said it would consider exemptions for U.S. exports to announce that Nexperia’s Chinese plants will resume supplies, the source said. Nexperia from the ground.
“As a responsible major country, China fully considers the safety and stability of domestic and international production and supply chains,” the ministry said, adding that companies experiencing difficulties in sourcing parts should contact Chinese authorities. “We will comprehensively consider the actual situation of the enterprise and exclude eligible exports.”
Trump did not respond to the situation
The White House did not immediately respond to a request for comment. It is expected to release more details soon on the US-China trade truce, which also included the production and distribution of Nexperia chips. The truce was concluded at a summit between US President Donald Trump and his Chinese counterpart Xi Jinping this week in South Korea.
Nexperia makes basic, low-cost power management chips like transistors and diodes that cost just a few cents to buy. However, such chips are needed in almost every device that uses electricity.
In cars, chips are used to connect batteries to motors, for lights and sensors, for braking systems, airbag controls, entertainment systems and power windows.
Automakers have warned the White House that without a steady supply of chips, major U.S. auto production will begin to grind to a halt in the coming weeks. On Tuesday, for example, Honda already suspended production at the Mexican plant.
