China Partly Ends Nexperia Export Ban After Supply Chain Strain

China has authorized semiconductor manufacturer Nexperia to resume exports of some of its chips, following weeks of disruptions that affected car manufacturers and electronics producers worldwide. The decision, announced shortly after a summit between Chinese President Xi Jinping and US President Donald Trump in South Korea, marks a significant step toward stabilizing global semiconductor supply chains.

Nexperia, headquartered in the Netherlands and owned by China’s Wingtech Technology since 2019, plays a key role in the production of essential components for the automotive and consumer electronics industries. Although the company’s intellectual property and primary production centers remain in Europe, its chip wafers are sent to China for validation, packaging and global distribution.

The conflict began on Sep. 30, when the Dutch government took control of Nexperia under a Cold War-era law, citing national security concerns and alleging that Wingtech planned to move production to China. This intervention led Beijing to suspend exports of the company’s finished chips from China, further tightening an already strained global supply chain.

“The Dutch side persists in its unilateral course without taking concrete actions to resolve the issue, which will inevitably deepen the adverse impact on the global semiconductor supply chain,” said Wang Wentao, Minister of Commerce, China. The ministry called on the Netherlands to “stop interfering” in Nexperia’s internal affairs and announced that companies affected by the embargo could apply for export exemptions.

The Netherlands responded by reaffirming ongoing diplomatic discussions. “We remain in contact with the Chinese authorities and our international partners to work toward a constructive solution that is good for Nexperia and our economies,” a spokesperson from the Dutch Ministry of Economic Affairs told Reuters.

Following the bilateral meeting between Xi and Trump, China said it would begin accepting applications for export exemptions, and hours later, authorized the partial resumption of Nexperia’s chip exports. Nexperia confirmed that it had sufficient inventory to restart deliveries to customers and was implementing “multiple contingency plans” to secure alternative wafer sources. The company expects to normalize orders before the end of the year.

The European Commission welcomed signs that China had engaged with EU companies to restore partial chip flows. A Nexperia spokesperson confirmed that the company was focusing on stabilizing supplies and aimed to “de-escalate as soon as possible.”

Despite this, a letter signed by Stefan Tilger, interim CEO, Nexperia, dated Oct. 29 and obtained by Reuters, revealed that the company had suspended the supply of wafers to its assembly plant in Dongguan, Guangdong province, due to “a direct consequence of the recent breach of contractual payment terms by local management.” The suspension could further strain supplies for automakers already affected by the embargo.