Beijing has said it will loosen a chip export ban it imposed after Dutch authorities took over Nexperia, a Chinese-owned chipmaker based in the Netherlands.
In September, the Netherlands invoked a Cold War-era law to take control of Nexperia, stating serious governance shortcomings which could impact the availability of chips - critical for making cars - in an emergency.
In response, China announced that it would not re-export Nexperia chips completed in its Chinese factories to Europe. Last month, companies like Volvo Cars and Volkswagen warned this could lead to temporary shutdowns at their plants.
On Saturday, Beijing said it would consider exempting individual firms from the ban.
Around 70% of Nexperia chips made in Europe are sent to China to be completed and re-exported to other countries.
On Saturday, the Chinese government stated: We will comprehensively consider the actual situation of enterprises and grant exemptions to exports that meet the criteria. It did not elaborate on what the criteria is, but criticized the Dutch government's improper intervention in the internal affairs of enterprises which, it claimed, led to the current chaos in the global supply chain.
Last week, Nexperia announced it would halt shipments of chips to China for processing, citing the need for alternative solutions to ensure supply continuity for its customers.
Nexperia, which is headquartered in the Netherlands, is owned by Wingtech, a company backed by the Chinese government that acquired the Dutch business in 2018.
In October, Nexperia's CEO, Zhang Xuezheng, was ousted after the Dutch court suspended him as a director due to managerial shortcomings that were compromising the company's operations in Europe.
The European Automobile Manufacturers' Association (ACEA) had previously warned that Nexperia chip supplies could only last a few weeks unless the Chinese ban was lifted, jeopardizing production in the automotive sector.
The recent developments in China’s export policy have surfaced following a meeting between US President Donald Trump and Chinese President Xi Jinping earlier this week, where chips were reportedly discussed.
The US government placed Wingtech on its entity list in December 2024, branding the company as a national security concern.
In the UK, Nexperia faced national security issues leading to the sale of its silicon chip plant in Newport, but still maintains a facility in Stockport.
