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China Grants Export Exemptions on Nexperia Chips to Ease Global Supply Strain

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China’s Commerce Ministry announced on Sunday that it has granted exemptions to export restrictions on Nexperia-manufactured chips intended for civilian use, a move expected to ease supply shortages that have disrupted the global automotive industry.

The decision marks Beijing’s most significant step yet toward de-escalating the standoff with the Netherlands over control of Nexperia, a Dutch-based chipmaker owned by China’s Wingtech Technology. The export curbs, imposed after the Dutch government seized control of Nexperia on September 30, had caused widespread shortages of chips essential for carmakers and suppliers worldwide.

China did not specify what qualifies as “civilian use,” but the announcement follows reports from German and Japanese automakers that deliveries of Nexperia’s Chinese-made chips have resumed.

The dispute began when the Dutch government accused Wingtech of planning to relocate Nexperia’s European production to China, citing risks to Europe’s economic security. In response, Beijing halted exports of Nexperia’s packaged chips, most of which are produced in China.

Following an October 30 meeting between U.S. President Donald Trump and Chinese President Xi Jinping, Beijing said it would begin reviewing applications for export exemptions — a process that appears to have now taken effect.

Despite this thaw, analysts warn that China-EU relations remain strained, and tensions will persist until the ownership and operational control of Nexperia are fully resolved.

“China welcomes the EU to continue leveraging its influence to urge the Netherlands to promptly rectify its erroneous actions,” the Commerce Ministry said, calling for an end to the Dutch intervention.

Netherlands May Drop Control of Nexperia If China Resumes Chip Exports

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The Dutch government is reportedly prepared to end its control over Nexperia if China resumes exports of the company’s chips, potentially easing tensions that have rattled global supply chains, Bloomberg News reported on Friday.

Citing people familiar with the matter, Bloomberg said authorities in the Netherlands could suspend the ministerial order as soon as next week, provided shipments from China resume and are verified. The order, imposed on September 30, gave The Hague temporary veto powers over Nexperia’s corporate decisions amid concerns about Chinese influence over the semiconductor maker.

Dutch Economy Minister Vincent Karremans said on Thursday he expected Nexperia chips to reach European and global customers “in the coming days.” He added that the government would “support these developments, and take appropriate steps where necessary.”

A spokesperson for Karremans declined to clarify whether those steps could include lifting the intervention, which was initially designed to safeguard Dutch strategic interests in the semiconductor sector.

The dispute erupted after the Chinese government blocked exports of Nexperia’s products from the country in early October, following the Dutch seizure of control. The move sparked a global shortage of Nexperia chips, which are widely used in automotive, industrial, computing, and consumer electronics.

The disruption forced several European carmakers to scale back production and furlough workers. Industry analysts say restoring chip flows is critical to stabilizing supply chains and preventing further economic fallout.

Nexperia, which was acquired by China’s Wingtech Technology, has yet to comment on the Dutch government’s latest position.

Nexperia Warns It Cannot Guarantee Quality of China-Made Chips After October 13

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Dutch semiconductor manufacturer Nexperia said it expects to resolve the ongoing crisis over control of the company but cautioned customers that chips produced in China after October 13 may not meet its quality or authenticity standards.

The warning follows a turbulent period for the firm, which saw the Dutch government seize control of Nexperia on September 30 amid national security concerns, and China respond by blocking chip exports on October 4. The resulting standoff has disrupted supply chains for automakers and electronics manufacturers that rely on Nexperia’s components.

The company said its operations outside China — including facilities in Europe, Malaysia, and the Philippines — remain unaffected and are functioning normally.

In a statement, Nexperia welcomed assurances that, under a new U.S.-China agreement, it will be exempt from American export restrictions for one year. Beijing has also said it will allow exports on a “case-by-case” basis.

Nexperia’s Chinese parent company, Wingtech Technology, remains under U.S. restrictions, and its founder Zhang Xuezheng was suspended as Nexperia CEO by a Dutch court on October 7, contrary to earlier reports suggesting he retained control.

While most of Nexperia’s chips are manufactured in Europe, about 70% are packaged and distributed in China, where the local unit has declared operational independence and claims to have sufficient inventory to meet demand through 2025.

The Dutch firm said it remains committed to maintaining its Chinese operations while seeking alternative packaging and supply solutions to ensure “product availability in a sustainable manner.”