The flow of semiconductor chips from China to the European automotive industry may soon resume following an agreement reached between U.S. President Donald Trump and Chinese President Xi Jinping. This deal reportedly addresses the recent tensions between the Netherlands and China regarding the export of critical automotive components.
The dispute initially arose when the Dutch government exerted control over Nexperia, a chipmaker, in late September due to U.S. security concerns regarding its Chinese owner, Wingtech. In retaliation, China halted exports from Nexperia’s Chinese facilities, raising alarms about potential disruptions in car production across Europe and Japan.
The U.S. had placed Wingtech on a list of companies subject to strict export controls, but the agreement between Trump and Xi includes a one-year delay in implementing these restrictions, contingent upon China easing its export limitations on chips and essential rare-earth minerals.
Dutch Economy Minister Vincent Karremans expressed confidence that Nexperia chips would soon reach customers globally. Additionally, Aumovio, a key supplier for the German automotive sector, confirmed it had received notice from China indicating that chip supplies would resume.
The central issue revolves around Nexperia’s operations in the Netherlands, following its acquisition by Wingtech in 2018. Concerns arose that the company’s operations and intellectual property might shift to China, prompting the Dutch government to intervene. Although Nexperia welcomed the suspension of the U.S. export rule, it acknowledged ongoing uncertainties regarding the delivery of products from its Chinese facility.
While the agreement appears to offer relief to the European automotive sector, the complexities of global supply chains and the dependencies of European and Japanese companies on Chinese semiconductor production remain underscored. Reports indicate that the Dutch government is prepared to rescind its authority over Nexperia’s corporate decisions in exchange for resuming critical chip exports from China.
Source: https://www.theguardian.com/business/2025/nov/07/china-poised-to-lift-ban-on-chips-exports-to-european-carmakers-after-us-deal