China declared on Saturday that it would ease the chip export ban imposed after the Dutch authorities took control of Nexperia, a Chinese-owned semiconductor company headquartered in the Netherlands.
In late September, the Netherlands invoked a Cold War-era law to assume control of Nexperia, citing ‘serious governance shortcomings and aiming to safeguard chip availability during emergencies. The move, which heightened concerns over potential chip shortages, targeted the Chinese-owned semiconductor firm whose parent company, Wingtech, is backed by the Chinese government.
In retaliation, China prohibited the re-export of Nexperia chips to Europe and accused the United States of interfering in Dutch legal proceedings to oust Nexperia’s Chinese CEO.
Approximately 70% of the chips produced in the Netherlands are shipped to China for final processing before being re-exported to other countries.
On Saturday, China stated that it would “comprehensively consider the actual situation of enterprises and grant exemptions to exports that meet the criteria,” though it did not clarify the specifics.
Beijing also criticized “the Dutch government’s improper intervention in the internal affairs of enterprises,” blaming it for causing the current disruption in the global supply chain.
According to the Wall Street Journal, the partial restart of Nexperia chip shipments was included in a trade agreement reached between Chinese President Xi Jinping and U.S. President Donald Trump following discussions held in South Korea on Thursday.
Nexperia manufactures relatively basic components, such as diodes, voltage regulators, and transistors, which remain essential due to the growing reliance of vehicles on electronic systems.
“Without these chips, European automotive suppliers cannot build the parts and components needed to supply vehicle manufacturers, and this therefore threatens production stoppages,” the European Automobile Manufacturers’ Association (ACEA) affirmed.
Automakers and parts manufacturers had warned that shortages of these chips could lead to halts in production lines across Europe.
Meanwhile, the White House is expected to publish a fact sheet outlining its new trade deal with China, which will also include the announcement of Nexperia exports resuming.
In December 2024, the U.S. government added Wingtech to its ‘entity list,’ labeling the company a national security risk.
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