Auto giants rally as China considers Nexperia chip export exemptions
In this photo illustration, the logo of semiconductor manufacturer Nexperia is displayed on a screen.
VCG | Visual China Group | Getty Images
Shares of Europe’s biggest automakers rose on Monday as fears about a semiconductor shortage in the industry eased.
China said on Saturday it would consider some exemptions for Nexperia chip exports. It had previously blocked Nexperia semiconductors from leaving the country after the Dutch government seized control of Nexperia, owned by Chinese company Wingtech.
The tension between the Netherlands and China had mobilized automotive groups. raise the alarm due to worsening sawdust shortages.
of france Renaultof Germany Mercedes-Benz Group and Milan-listed shares of the Jeep maker Stellantis All were trading up around 3% on Monday morning.
auto parts suppliers valeo And Aumovio They were up 3.3% and 1.8%, respectively, at around 10:54 a.m. London time (5:54 a.m. ET).
of Germany volkswagen, porsche And bmw it was also trading more than 1.5% higher.
Shares of Volkswagen and Stellantis in the last three months.
The situation with Nexperia began in September, when the Dutch government took control of the company, in what was seen as a highly unusual move after the United States raised security concerns.
In making the decision, the Dutch government expressed fears that the company’s technology, which specializes in high-volume production of chips used in automotive, consumer electronics and other industries, “could not be used in an emergency situation.”
China responded by blocking exports of the firm’s finished products.
German automakers are thought to be particularly sensitive to Nexperia-related disruptions because they rely heavily on large domestic suppliers, known as “Tier 1s”, and local production facilities and companies like Nexperia, even though much of their production has moved to China.
Japan’s Honda Motor last week became the first known automaker to cut production due to the problem.
