Beijing has said it will loosen a chip export ban it imposed after Dutch authorities took over Nexperia, a Chinese-owned chipmaker based in the Netherlands.
In September, the Netherlands invoked a Cold War-era law to take control of Nexperia, stating 'serious governance shortcomings' which could impact the availability of chips - critical for car manufacturing - in an emergency.
In response to this action, China announced it would not re-export Nexperia chips completed in its factories back to Europe. This decision raised alarms among major automotive manufacturers like Volvo Cars and Volkswagen, who warned of potential temporary shutdowns at their facilities.
On Saturday, Beijing indicated it would consider exemptions for individual firms from the ban.
Around 70% of Nexperia chips produced in Europe are sent to China for completion and re-export. China's government stated: 'We will comprehensively consider the actual situation of enterprises and grant exemptions to exports that meet the criteria.' Details concerning these criteria were not provided, but the government criticized the Dutch intervention in business operations as a catalyst for 'chaos in the global supply chain.'
Meanwhile, Nexperia has paused sending chips to China for processing and is seeking alternatives to ensure supply continuity, a move communicated to its customers last week.
Nexperia, headquartered in the Netherlands, is owned by Wingtech, a company tied to Chinese government interests, which bought the Dutch firm in 2018. Tensions escalated when Nexperia's chief executive, Zhang Xuezheng, was ousted following a court’s suspension over governance concerns.
The European Automobile Manufacturers' Association (ACEA) has previously warned that Nexperia's chip supplies would soon be depleted unless the Chinese ban was uplifted, emphasizing that the absence of chips could severely affect European automobile production.
This development also ties into broader dialogues, as recent meetings between U.S. President Donald Trump and Chinese President Xi Jinping included discussions about chips, although specifics were less clear from Beijing's side.
The U.S. government placed Chinese manufacturer Wingtech on an 'entity list' in late 2024 due to national security concerns, putting further pressure on the international chip market. In the UK, Nexperia sold its silicon chip plant in Newport after national security discussions, while retaining a facility in Stockport.
