Semiconductor Crisis Eases as Key Chip Shipments Resume
The global automotive industry has received crucial relief as shipments of vital semiconductors from Nexperia have resumed following China's decision to grant export exemptions. This development comes after weeks of supply chain disruptions that threatened production lines worldwide.
Diplomatic Breakthrough Unlocks Chip Supply
German Chancellor Friedrich Merz confirmed positive signals that deliveries could restart, possibly within hours, marking a significant de-escalation in the ongoing trade dispute. The German economy ministry welcomed the continuation of negotiations between the Netherlands and China, expressing hope that short-term individual permits would quickly reach the industry.
The crisis began on September 30 when the Dutch government took control of Nexperia, citing concerns that its Chinese owner Wingtech was planning to move European production to China, posing a threat to European economic security. China responded by cutting off exports of the company's finished chips, which are primarily packaged in Chinese facilities.
Automakers Confirm Supply Chain Movement
Several major automotive manufacturers have confirmed the resumption of chip deliveries. Volkswagen's China chief Ralf Brandstaetter revealed that the industry has received its first deliveries of chips, noting that the Chinese Ministry of Commerce reacted quickly following the agreement with the United States.
Honda Executive Vice President Noriya Kaihara reported that shipments have started in China, though he cautioned that the long-term outlook remains uncertain. The Japanese automaker had suspended output at a Mexican plant last week and adjusted operations in the United States and Canada due to the chip shortage.
German automotive supplier Aumovio became the first company to confirm it secured an exemption from Chinese export controls, receiving deliveries of Nexperia's crucial chips. This breakthrough came after the Chinese trade ministry announced it would begin accepting applications for exemptions following discussions between US and Chinese leaders.
Industry Remains Cautiously Optimistic
While Nexperia couldn't confirm that its chip supplies had restarted, the company expressed optimism that product flow could resume soon now that the Chinese trade ministry committed to issuing exemptions. Wingtech, Nexperia's Chinese owner, declined to comment on the developments.
The automotive industry had been preparing for worst-case scenarios, with suppliers like Aumovio and ZF rushing to apply for exemptions while preparing to furlough workers if no solution emerged. European carmakers, including Volkswagen, maintained their 2025 forecasts in third-quarter reports but had warned of looming chip shortages in their supplier networks.
As the industry limps toward the end of another challenging year, the resumption of Nexperia chip shipments provides much-needed stability, though executives emphasize that sustainable solutions depend heavily on ongoing US-China relations.
