Item 1 of 2 The headquarters of computer chipmaker Nexperia is seen in Nijmegen, Netherlands April 12, 2024. REUTERS/Piroschka van de Wouw/File Photo
WASHINGTON, Oct 31 (Reuters) – The White House plans to announce that Dutch chipmaker Nexperia’s China facilities will resume shipments, a source said, in what would be a relief for auto manufacturers worldwide who faced the imminent prospect of curbing production.
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The company produces large volumes of semiconductors in the Netherlands that are widely used in autos and consumer electronics. Some 70% of the Netherlands-produced chips are packaged in China and sold mostly to distributors.
The Chinese Commerce Ministry appeared to confirm the source’s comments in a statement, saying it will consider exemptions for Nexperia chip exports from the country.
“As a responsible major country, China fully considers the security and stability of domestic and international production and supply chains,” the ministry said, adding companies facing difficulty obtaining parts should contact Chinese authorities. “We will comprehensively consider the actual situation of the enterprise and exempt eligible exports.”
The White House did not immediately respond to a request for comment. It is expected to soon release a fact sheet offering more details on a trade truce between the U.S. and China that included Nexperia and was struck at a summit between U.S. President Donald Trump and his Chinese counterpart Xi Jinping in South Korea this week.
Nexperia makes basic, inexpensive power control chips such as transistors and diodes that cost only a few cents to buy. However, such chips are needed in almost every device that uses electricity.
In cars, they are used to connect the battery to motors, for lights and sensors, for braking systems, airbag controllers, entertainment systems and electric windows.
Automakers have warned the White House that without a steady supply of chips, significant U.S. auto production would begin to shut down in the coming weeks.
Court filings showed that the seizure by the Dutch government came as U.S. pressure was rising on Nexperia after Wingtech was placed on a restricted-export list, though Dutch authorities say governance shortcomings were the trigger.
Reporting by David Shepardson; Editing by Scott Malone, David Gregorio and Muralikumar Anantharaman
Our Standards: The Thomson Reuters Trust Principles.
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