China to reauthorize exports of Nexperia chips to Europe
The move is part of a trade deal stemming from talks between Presidents Xi Jinping and Donald Trump in South Korea on Thursday, The Wall Street Journal reported citing unnamed sources.
An engineer at a semiconductor fab.
China announced Saturday that it is considering exempting certain chips from manufacturer Nexperia from a ban on exports to Europe, imposed amid a dispute with Dutch authorities that has generated concern in the auto industry.
"We will comprehensively consider the real situation of the companies and grant exemptions to exports that meet the criteria," a ministry spokesman said in an official statement. The move is part of a trade deal stemming from talks between Presidents Xi Jinping and Donald Trump in South Korea on Thursday, according a Wall Street Journal report, citing unnamed sources.
Nexperia, based in the Netherlands and acquired by a Chinese company in 2018, was tapped in late September by the Dutch government for national security reasons. In response, Beijing banned exports of Nexperia products from China to Europe, raising alarm among automakers, which rely on these electronic components for their vehicle systems.
China blamed the Netherlands for the situation, accusing the "inappropriate intervention of the Dutch government in the internal affairs of enterprises," which it says caused "the current chaos in the global supply chain," per AFP.
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Nexperia's technology
Nexperia produces technology considered relatively basic, such as diodes, voltage regulators and transistors, but crucial to the automotive industry. According to German newspaper Handelsblatt, the company supplies approximately 49% of the electronic components used in the European automotive industry.
European auto lobby group ACEA warned that the lack of chips could seriously affect production.
Manufacturers such as France's OPmobility pointed out that, although Nexperia chips are widely used, they are not technologically unique and could be substituted in certain cases. However, their absence continues to raise concerns about the immediate impact on the automotive supply chain, in addition to other sectors such as industrial and consumer electronics.
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China's decision to reauthorize certain exports comes at a critical time, following months of trade tensions that highlight Europe's vulnerability to the concentration of key semiconductor suppliers in Asian markets.
Why are Nexperia chips so important to the automotive industry?
Although Nexperia does not make advanced chips such as processors or artificial intelligence units, it produces basic semiconductors—diodes, transistors, voltage regulators and power circuits—that are essential to the electrical operation of any vehicle.
These components control fundamental tasks such as:
- Power management in motors, batteries and hybrid systems.
- The control of lights, sensors, brakes, airbags and temperature.
- The protection of electrical circuits against overloads or fluctuations.
- Without them, no electronic system in the car could function properly.
They are in almost every vehicle.
Their customer base includes top-tier suppliers that supply parts to giants such as Volkswagen, Stellantis, Renault, BMW and Mercedes-Benz.
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