Some Nexperia chip shipments resume as Germany welcomes de-escalation
(Paragraph 10 of the Nov. 7 story has been corrected to show that Volkswagen’s China chief said the industry as a whole, not VW specifically, had received its first chip shipments)
China’s export exemptions could ease supply pressure
Aumovio granted exemption for Nexperia chips
Honda and Volkswagen say shipments in China have resumed
Written by: Rachel More, Christina Amann and Daniel Leussink
BERLIN/TOKYO, Nov 7 (Reuters) – Semiconductor maker Nexperia has resumed some shipments of its vital chips, auto executives said on Friday, welcoming signs of easing tensions in the fight for control of the company that has shaken Germany’s auto industry. Nexperia, Chinese-owned but headquartered in the Netherlands, produces billions of simple but ubiquitous chips for cars and other electronic devices. The supply of these chips has been disrupted since a dispute between Amsterdam and Beijing over technology transfers amid a broader US-China trade war.
The economy ministry spokesman of Germany, Europe’s largest automobile manufacturer, said, “It is extremely pleasing at this point that the tensions between the Netherlands and China have decreased and continue.”
The spokesman added that the ministry is hopeful that “short-term individual permits will reach the industry quickly” and allow Nexperia’s chip shipments to resume.
German Chancellor Friedrich Merz said there were positive signals that deliveries could resume “probably within the next few hours.”
The Dutch government took control of Nexperia on September 30, saying its Chinese owner, Wingtech, planned to move the company’s European production to China, which would pose a threat to Europe’s economic security.
China responded by cutting exports of the company’s finished chips, which are mostly packaged in China. However, he said he would begin accepting exemption applications after the meeting between US President Donald Trump and Chinese President Xi Jinping this weekend.
AUMOVIO, VOLKSWAGEN, HONDA NOTIFIED MOVEMENT IN DELIVERIES
Germany’s Aumovio, one of the automotive suppliers facing pressure on their supply chains, has secured delivery of Nexperia’s chips from China, Aumovio’s chief executive told Reuters on Friday.
It became the first supplier to confirm exemption from Chinese export controls, which were introduced after the Netherlands took control of Nexperia, citing concerns about its Chinese parent company Wingtech.
The auto industry has received its first deliveries of chips, Volkswagen’s China chief told German newspaper Handelsblatt.
“Following the agreement with the United States, the Chinese Ministry of Commerce reacted quickly and announced that it would issue short-term special permits,” said Ralf Brandstaetter, a member of the Chinese board of directors of Europe’s largest automobile manufacturer.
He said that how sustainably this system will function depends especially on the relations between the USA and China.
Honda, Japan’s second largest automaker, also reported signs of pickup in deliveries.
Honda Deputy General Manager Noriya Kaihara said, “As of now, we have received information that shipments have started in China.” “Looking ahead, it’s hard to say anything definitive,” he said, adding that the company was working to resume production at affected facilities starting late next week.
Honda last week suspended production at a facility in Mexico and adjusted its operations in the United States and Canada.
AUTO PRODUCTION THREAT WHEN A SOLUTION IS FOUND
Nexperia said it could not confirm that chip supplies had resumed. But a spokesman said “we assume that the flow of our products can resume soon” because China’s commerce ministry has said it will issue exemptions.
Wingtech declined to comment.
Automotive suppliers such as Aumovio and ZF rushed to apply for exemptions as they prepared to furlough workers at their production facilities if a solution was not found. European automakers such as Volkswagen, limping towards the end of another bad year, cautiously maintained their 2025 forecasts for the third quarter but warned of looming chip shortages in their supplier networks.
($1 = 0.8575 euros) (Additional reporting by Bernatte Hogg, Thomas Seythal, Christoph Steitz, Alexander Ratz, Toby Sterling and Sarah Marsh. Editing by Emelia Sithole-Matarise and Mark Potter)
