China grants exemptions to export curbs on Nexperia chips for civilian use

BEIJING – China has granted exemptions to export controls on Nexperia chips for civilian applications, the Commerce Ministry said on Nov 9 in a move that will help relieve supply shortages for carmakers and automotive suppliers.

The announcement is the strongest signal yet from Beijing that it will ease pressure on the global auto industry caused by export curbs imposed after the Dutch government took control of Nexperia, a major manufacturer of basic chips used in automotive electrical systems.

Nexperia is based in the Netherlands but is owned by Chinese company Wingtech.

The Chinese Commerce Ministry did not specify what it considered to be civilian use, but its announcement follows statements from German and Japanese companies saying deliveries of Nexperia’s Chinese-made chips have resumed.

Nevertheless, bilateral ties between China and the Netherlands, and by extension the European Union, are likely to remain strained until the dispute over Nexperia’s ownership and operations is resolved.

The Dutch government took control of Nexperia on Sept 30, saying Wingtech was planning to move the company’s European production to China, which would pose a threat to European economic security.

Beijing responded by halting exports of Nexperia’s finished chips, which are mostly packaged in China, though it said last week it would begin accepting applications for exemptions

after a meeting

between US President Donald Trump and Chinese President Xi Jinping on Oct 30.

The Chinese Commerce Ministry has repeatedly said it is protecting global chip supply chains, while the Netherlands is failing to take action to resolve the dispute.

The ministry’s statement on Nov 9 said China hopes the EU will “further intensify” efforts to urge the Dutch government to revoke its seizure of Nexperia.

“China welcomes the EU to continue leveraging its influence to urge the Netherlands to promptly rectify its erroneous actions,” the ministry added. REUTERS