China is relaxing its export ban on Nexperia semiconductors to Europe, allowing some shipments to resume. The decision comes after a trade deal between Chinese President Xi Jinping and US counterpart Donald Trump was reached in South Korea earlier this week.
The dispute over Nexperia began when the Netherlands invoked a Cold War-era law to effectively take control of the chipmaker's parent company Wingtech, which is backed by the Chinese government. In response, China imposed an export ban on all re-exports of Nexperia chips to Europe.
However, Beijing has now agreed to grant exemptions to exports that meet certain criteria. This move could help alleviate anxiety among European carmakers and parts suppliers who had warned of potential chip shortages supplied by Nexperia.
Nexperia produces relatively simple technologies such as diodes, voltage regulators, and transistors, which are crucial for vehicles increasingly reliant on electronics. The chips are mainly found in cars but also in industrial components, consumer electronics, and refrigerators.
European carmakers and parts suppliers had warned of potential production stoppages due to the chip shortages, with 49% of electronic components used in the European automotive industry relying on Nexperia's supplies. However, French parts maker OPmobility notes that while Nexperia's chips are widely used, they are not unique in terms of technology and can be easily substituted.
The Chinese government has suggested that companies experiencing difficulties can contact the ministry or local commerce authorities for support.
The dispute over Nexperia began when the Netherlands invoked a Cold War-era law to effectively take control of the chipmaker's parent company Wingtech, which is backed by the Chinese government. In response, China imposed an export ban on all re-exports of Nexperia chips to Europe.
However, Beijing has now agreed to grant exemptions to exports that meet certain criteria. This move could help alleviate anxiety among European carmakers and parts suppliers who had warned of potential chip shortages supplied by Nexperia.
Nexperia produces relatively simple technologies such as diodes, voltage regulators, and transistors, which are crucial for vehicles increasingly reliant on electronics. The chips are mainly found in cars but also in industrial components, consumer electronics, and refrigerators.
European carmakers and parts suppliers had warned of potential production stoppages due to the chip shortages, with 49% of electronic components used in the European automotive industry relying on Nexperia's supplies. However, French parts maker OPmobility notes that while Nexperia's chips are widely used, they are not unique in terms of technology and can be easily substituted.
The Chinese government has suggested that companies experiencing difficulties can contact the ministry or local commerce authorities for support.
just found out that the US is recalling over 500k vehicles due to faulty Takata airbags, and it's only going to get worse... those things are like ticking time bombs 
But seriously, European carmakers are really counting on Nexperia's chips, and this deal could save them from major production headaches. Still, OPmobility saying that Nexperia's tech isn't unique is a bit reassuring... I mean, if they can just find another supplier or something 
. It feels like a temporary fix to avoid any more chaos in the chip market. What's to stop Nexperia from cutting ties with Europe again? And what about all the other companies that are affected by their export ban? 
I mean, we're talking about some pretty basic tech stuff here - diodes and voltage regulators. Can't they just... I don't know, innovate or something? 
Not to mention, if Nexperia's tech isn't unique, why are they getting such exemptions in the first place? 
they must be having a total nightmare with these chip shortages 
but im glad china is relaxing the export ban 
it's like, a big weight has been lifted off their shoulders 
maybe now we can get back to some sense of normalcy in the industry 
and i love that french parts maker opmobility is all like "hey nexperia's chips might be widely used but they're not unique lol" 
Is it about getting back at the Netherlands for taking control of Wingtech or is this just a strategic move to boost China's chip exports? 
The Chinese government seems like they're playing both sides against each other, and I'm all for keeping our eyes peeled on this one. 
This whole thing is making me think about the US-China trade deal and how it might affect global chip production... 
so great to see china finally coming around after all that drama 
. i mean, who wouldn't want to keep their chip supplies flowing and not risk a huge economic mess 
. This is a good move, especially since there were some major carmakers and parts suppliers freaking out about potential chip shortages 
. The whole thing started when the Netherlands tried to take control of Wingtech, which is Chinese-backed 
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. This should help ease tensions a bit. Nexperia makes pretty basic tech stuff like diodes and transistors, so I guess it's not the end of the world 
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. I'm just glad that China is offering support to companies struggling with this shortage 
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. I mean, think about it - the entire European automotive industry was at risk due to chip shortages, but now that's being addressed 
. It's not just Nexperia, though - this could have a ripple effect on many other industries too 
. Companies like OPmobility are already saying that these chips aren't unique in terms of tech, so I'm sure they'll be able to adapt and find alternative suppliers pretty quickly 
. Fingers crossed for the European economy 
!
. Everyone's freaking out about car shortages and production stoppages, but honestly, OPmobility's right - Nexperia's not that special tech-wise. And let's be real, 49% of electronic components relying on them is just a number 
. I'm sure those European carmakers could've found some other supplier or invested in some new technology... it's not like they're completely dependent on Nexperia for survival 
. Still, it's good that companies can get support from the Chinese government if they're struggling 
. Are other countries going to start imposing export bans too? That'd be a total mess 
. The thing that really got me was how this whole thing started with some Dutch law 