European Union: China confirms the resumption of exports of Nexperia chips

Nexperia chips

China responded by banning the re-export of Nexperia chips to Europe, which raised concerns among automakers given that these components are essential for cars’ electronic systems.

But China announced last weekend that it would exempt some Nexperia chips. "Nexperia" From the export ban, in a move that was reported to be part of the framework of a trade agreement agreed upon by Chinese President Xi Jinping and US President Donald Trump after talks they held in South Korea.

European welcome

European Union Trade Commissioner Maros Sefcovic welcomed, in a post on the X platform,"Certainly today… regarding further simplification of Nexperia chip export procedures for customers in the European Union and globally"

He indicated that export will be permitted as long as the chips are intended exclusively for…"Civilian use"Pointing out that the measure is included "immediately" into force.

He pointed out that talks with China are continuing to find a framework for action "Sustained, consistent and predictable ensuring full restoration of semiconductor flow"

Automotive industry

The German company Omovio, which is a major supplier to the automobile industry, said on Friday that it had received permission from the Chinese authorities to resume exporting Nexperia chips.

The chips are manufactured in Europe but are then sent to China to complete the production process, to then be re-exported to Europe and other markets.

Risks of stopping production

The Volkswagen Group was the largest car manufacturer in Europe warned of the risks of stopping production if the crisis continues, while reports indicated that smaller companies were preparing to reduce working hours.

The Dutch government justified its seizure of Nexperia with concerns related to national security, accusing the company’s CEO of mismanagement.