Volkswagen Sees Chip Supply Relief After US-China Deal

Volkswagen confirmed that automakers have started receiving new semiconductor shipments from Nexperia following an agreement between the United States and China that temporarily lifts export restrictions. The move has eased pressure on the global automotive supply chain after weeks of disruption caused by escalating trade tensions.

Ralf Brandstätter, head of Volkswagen’s operations in China, told the German newspaper Handelsblatt that Nexperia deliveries had resumed. “The first shipments have already been made,” he said. “Following the agreement with the United States, China’s Ministry of Commerce acted quickly to issue short-term special export permits.”

Nexperia, a Dutch semiconductor producer owned by a Chinese parent company, was placed under temporary control by the Dutch government on Sep. 30 amid increasing scrutiny of Chinese investment in European technology firms. In response, China suspended exports of Nexperia products on Oct. 4, triggering a shortage of key automotive chips used by major global manufacturers.

Under the new arrangement, Nexperia will be exempt from US export restrictions for one year, while China’s Ministry of Commerce will handle export approvals on a case-by-case basis.

Brandstätter said Volkswagen’s operations in China had not yet been affected by the earlier shortage but cautioned that uncertainty remains. “The durability of this arrangement will depend largely on how US–China relations evolve,” he said.

In Mexico, both Honda and Volkswagen reported temporary production stoppages linked to Nexperia’s supply disruption. Honda’s output fell 24% in October, while Volkswagen managed to remain stable with a 0.1% increase. Nexperia semiconductors are essential in modern vehicles, powering electronic systems across North America, Japan, and South Korea.

General Motors CEO Mary Barra said the company has “teams working around the clock with our supply chain partners to minimize potential disruptions.” Nissan executive Ivan Espinosa told CNBC that the company set aside US$163 million to mitigate risks related to the Nexperia shortage.

According to the European Automobile Manufacturers’ Association (ACEA), members such as BMW, Renault, Volkswagen, and Volvo have begun drawing from reserve chip inventories.