China will exempt some Nexperia chips from an export ban that was imposed amid an escalating dispute with the Dutch government, officials said on Saturday.
“We will comprehensively consider the actual situation of enterprises and exempt exports that meet the criteria,” China’s commerce ministry said in a statement.
Nexperia produces components in Europe before sending them to China for finishing and then exporting them back to customers in Europe.
The Netherlands-based company is owned by China’s WingTech Technology. The Dutch government invoked the Cold War-era law in September to take effective control of the semiconductor maker, prompting China to announce export controls on chips in October.
China, EU and US talk export controls
wall street journalCiting unnamed sources, it said the discount for Nexperia chips came after a meeting between US President Donald Trump and Chinese President Xi Jinping in South Korea.
The Dutch government declined to comment on the reports and said it was “in contact with Chinese officials to work towards a constructive solution that restores balance in the chip supply chain and that is good for Nexperia and our economies.”
Meanwhile, Chinese and EU officials also held talks more broadly on export controls.
“China confirms that the suspension of October export controls applies to the EU. Both sides reaffirmed their commitment to continue working on improving the implementation of export control policies,” EU Trade Commissioner Maros Sefcovic said in a post on Xpress.
Nexperia Why are semiconductors important?
According to the German business newspaper, Nexperia components are mainly found in cars, with the company supplying 49% of electronic components used in the European automotive industry. Handelsblatt,
Although the components are technically replaceable, establishing alternative supply chains is a major challenge for European automakers and other Nexperia customers.
“Without these chips, European automotive suppliers cannot manufacture the parts and components needed to supply vehicle manufacturers and are at risk of production halting,” European auto lobby ACEA warned last month.
In its statement on Saturday, China’s commerce ministry blamed “the Dutch government’s unreasonable interference in the internal affairs of enterprises” for the “current chaos in the global supply chain.”
Edited by: Srinivas Majumdaru