China has quietly removed export restrictions on semiconductors made by Nexperia, the Dutch chipmaker it effectively froze out last month, preventing a looming shutdown of assembly lines at Volvo, Volkswagen, and Jaguar Land Rover.
The commerce ministry confirmed Sunday that finished chips from Nexperia’s Chinese plants can now ship worldwide for civilian use without licenses.
The decision ends a six-week standoff triggered when the Dutch government seized control of the Nijmegen-based firm—owned by Shanghai-listed Wingtech—over national security concerns.
Roughly 70% of Nexperia’s European output travels to China for final packaging and testing before reaching automakers.
When Beijing blocked those re-exports in October, the European Automobile Manufacturers’ Association warned inventories would run dry within weeks.
Volvo Cars and Volkswagen publicly flagged possible plant closures, while Jaguar Land Rover called the shortfall an “existential threat.”
Relief came swiftly after last week’s Trump-Xi summit in South Korea produced a broader trade détente. EU Trade Commissioner Maroš Šefčovič announced Saturday on X that China would “grant exemption from licensing requirements to any exporter” for non-military chips.
German supplier Aumovio confirmed Friday it had already secured approval, with CEO Philipp von Hirschheydt telling Reuters full normalization would still take weeks.
Beijing’s commerce ministry urged the EU to pressure the Netherlands to “correct its erroneous practices,” keeping ownership tensions alive. The Dutch government cited “serious governance shortcomings” and fears that critical chips could become unavailable in a crisis when it assumed control.
Nexperia supplies nearly half of Europe’s automotive semiconductors, making any prolonged embargo a global risk. The episode highlights how quickly security-driven interventions can cascade through supply chains.
With exemptions now in place, European factories can restart full schedules. Yet the underlying dispute over foreign ownership of strategic tech assets remains unresolved, leaving the industry braced for the next flashpoint in the U.S.-China chip war.
