ELECTRIVE — 2025-11-10
Automotive Industry
The Chinese government has approved the first exemptions in the dispute over the export ban on chips produced by manufacturer Nexperia. Semiconductors from Nexperia can once again be exported to Europe for civilian purposes – including for the automotive industry.
China’s Ministry of Commerce announced on Sunday that it was relaxing the export restrictions that have been in place since early October. In a brief statement, the ministry said – without further explanation – that exemptions from the regulation had been granted for civilian purposes.
The announcement is likely to bring some relief to Europe’s automotive industry. The dispute surrounding the manufacturer, which is based in the Netherlands but owned by a Chinese parent company, has increasingly put the sector under pressure. Nexperia mainly produces simple standard chips used in a wide range of electronic devices. These are not specialised chips for specific applications such as processors for autonomous driving or infotainment systems, but small components primarily built into modules by suppliers – yet they remain critical to the overall system. After all, a car cannot be delivered without functioning window controls or seat adjustment systems, to name just two examples.
Even before the announcement from Beijing, reports had emerged of the first deliveries of urgently needed chips. VW’s China chief Ralf Brandstätter told Handelsblatt on Friday that initial exports had already taken place. Supplier Aumovio also received an export licence, as company CEO Philipp von Hirschheydt confirmed to Reuters.
Nexperia manufactures its chips within the EU, including in Germany. However, the products are shipped to China for final processing and packaging before the finished goods are exported back to Europe. This set-up allowed the Chinese government to interrupt supply with its export restrictions – and, as during the chip crisis of the Covid-19 pandemic, alternative products from other manufacturers cannot be used at short notice, since they must first be validated and/or adapted.
As previously reported, the Dutch state took control of Nexperia and dismissed Chinese CEO Zhang Xuezheng by court order. The government justified the move on the grounds of concerns about a potential transfer of technology to Nexperia’s Chinese parent company, Wingtech. In response, Beijing imposed export restrictions on parts of Nexperia’s production – measures that put many of Nexperia’s European customers under pressure. Industry associations such as the VDA and several companies had issued early warnings about production losses and potential plant closures. Some disruptions did occur in Europe, although the feared large-scale collapse did not materialise.
The Nexperia affair is far from over. China’s Ministry of Commerce linked the easing of restrictions to a demand that the EU should urge the Netherlands to reverse its actions against the manufacturer. Tighter rules could return if Beijing deems the pressure on the Dutch government is insufficient.