Automotive component suppliers are eager to seek exemptions from China's export restrictions on Nexperia chips, hoping to find political solutions to the trade standoff that has triggered panic in the auto industry about shutting down production...
Automotive component suppliers are eager to seek exemptions from China's export restrictions on Nexperia chips, hoping to find political solutions to the trade standoff that has triggered panic in the auto industry about shutting down production.
Reuters reported that the basic chips produced by Nexperia are widely used in automotive parts. The Dutch government took over the company out of concerns about its Chinese parent company Wingtech, and a dispute over Nexperia's dominance broke out in the Netherlands and China, putting the car assembly line at risk of shutting down.
China said on the 1st that it would consider exempting the export of affected chips, raising hopes in the industry that the matter could be resolved through political means.
ZF Friedrichshafen (ZF), a major German auto parts manufacturer, said that it is cooperating with the Chinese authorities and is committed to ensuring a continuous supply of chips. On the 3rd, it warned that if the supply shortage worsens, employees will have to be forced to take leave. Another supplier, Aumovio, also sought an exemption. People familiar with the matter revealed that an application has been submitted to the Chinese Ministry of Commerce, but a company spokesman declined to comment.
Volkswagen, Europe's largest car manufacturer, still cannot guarantee that its German factory will maintain production after this week. Bosch Group (Bosch) also notified its Salzgitter plant to implement unpaid leave due to shortage of raw materials.
ZF stated that the company is preparing for such measures, and it is still unable to confirm when China's chip supply will resume and to what extent it will be restored.
Maros Sefcovic, the European Union’s executive commissioner for trade affairs, said today that Nexperia negotiations are being promoted. He posted on the social platform
Further reading: Details of Sichuan-Xi meeting agreement made public! China suspends rare earth controls, releases Nexperia, and US delays tariffs It’s time for European semiconductors to wake up! Nexperia's crisis triggers supply chain restructuring, benefiting Taiwan's mature manufacturing processes The battle for Nexperia’s dominance raises concerns over the outflow of key semiconductor technologies to China
