China Removes Nexperia Ban, Relieves EU Trade Strain

China has lifted its export ban on semiconductors produced by Nexperia, a move expected to restore chip supplies to German automakers and ease trade tensions between Beijing and Europe. The decision follows the issuance of an export license to Aumovio SE, a key automotive supplier, earlier this week.

Aumovio CEO Philipp von Hirschheydt confirmed the development, stating that China’s Ministry of Commerce officially ended the general export prohibition on Nexperia on Nov. 7. “It will take some time before all procedures and processes return to normal,” von Hirschheydt said, noting that disruptions could persist for the next four to six weeks. However, he added, “If everything I know today is correct, we will not be affected.”

According to Bloomberg News, the Dutch government, which took control of the Chinese-owned chipmaker last month, is now prepared to suspend its oversight of Nexperia. The move signals a de-escalation in the dispute that had restricted European access to automotive semiconductors.

Aumovio — recently spun off from Continental AG — manufactures sensors, braking systems, and automated driving components. The company operates a dozen production plants in China and supplies parts to automakers including BMW AG, Volkswagen AG, and Stellantis NV. Aumovio has resumed shipments of Nexperia chips from China to Hungary for further distribution to its European facilities.

The announcement had immediate financial effects: shares of Wingtech Technology, Nexperia’s Chinese parent company, rose nearly 10% in Shanghai, while European automakers also rallied — Volkswagen shares climbed 2.7% in Frankfurt, BMW gained 2.5%, and Mercedes-Benz Group also advanced.

In Mexico, Honda Motor halted operations at its Celaya, Guanajuato plant on Oct. 28 due to a shortage of Nexperia semiconductors caused by the export restrictions, implementing production adjustments across North America a day earlier. Executive Vice President Noriya Kaihara said the company plans to resume production soon following confirmation that shipments from China have restarted.

“The political escalation over that specific company was a surprise to everyone,” said Nicolai Martin, member of the Board of Management of BMW AG, in an interview with Expansión. He warned that sovereign decisions could disrupt parts of an integrated industrial chain. Major German manufacturers had already been affected: ZF Friedrichshafen AG warned it might suspend workers if shortages persisted, while Volkswagen could not guarantee continued operations in Germany beyond the week. Mercedes-Benz also entered contingency mode.