Beijing: China announced it will lift the export ban on some Nexperia computer chips to Europe, addressing concerns that the restriction could severely impact EU car production. European automakers had previously expressed concerns that the shortage of chips supplied by Nexperia would lead to disruptions in production lines across Europe.
According to France24.com, tensions arose when the Netherlands invoked an old law in September to take control of Nexperia, whose parent company, Wingtech, is supported by the Chinese government. This prompted China to ban the re-export of Nexperia chips to Europe, accusing the United States of interfering in Dutch legal matters to remove Nexperia's Chinese CEO.
The issue of Nexperia was on the agenda as Chinese and European Union officials convened in Brussels. EU spokesperson Olof Gill confirmed that discussions would include the semiconductor manufacturer. Nexperia is known for producing essential technologies such as diodes, voltage regulators, and transistors, which are vital as vehicles increasingly integrate electronic components.
Nexperia's semiconductors are predominantly used in the automotive sector but are also found in various industrial and consumer electronics. The chips are produced in Europe, finished in China, and then re-exported to European clients.
The European automotive industry has voiced significant concerns over potential chip shortages, given that Nexperia supplies nearly half of the electronic components used in the sector, as reported by the German financial daily, Handelsblatt. The European Automobile Manufacturers Association (ACEA) warned that the production of vehicles could be adversely affected without these chips.
While Nexperia's chips are not technologically unique and can be replaced, French parts manufacturer OPmobility emphasized that new products require approval from automakers, which is a time-consuming process. On Saturday, Beijing indicated that some shipments would be allowed to resume, and companies experiencing difficulties were encouraged to contact the ministry or local commerce authorities for assistance.