China opens door to resumption of Nexperia chip exports

China appears to be cautiously opening the door to the resumption of Nexperia chip exports from that country. According to reports by NOS, the country has announced that some companies will be allowed to resume exporting components from chip manufacturer Nexperia. This comes after what China called “inappropriate interference” by the Dutch government, which had taken control of the Nexperia factories in Nijmegen. That factory produces wafers, which are then processed into chips in China. The automotive industry was severely affected by the Chinese export ban, which threatened to bring production lines to a standstill. Now there is some relief, although it is still unclear how far the recovery of exports will go.

China relaxes export ban

The relaxation follows a period of tension, during which the Dutch government took control of Nexperia for fear of technological knowledge flowing to China. The Chinese response to this was a complete export ban, which led to major concerns in the automotive industry. The partial resumption of exports now announced would specifically target companies that supply parts to the automotive market, among others. The ministry wants to closely examine the circumstances of these companies before granting exemptions for “eligible exports.” The decision may stem from a ‘trade truce’ discussed between Chinese President Xi and US President Trump during their recent meeting in South Korea.

Impact on the automotive industry

The automotive industry, already struggling with a semiconductor shortage since the coronavirus pandemic, was particularly hard hit by Nexperia's export ban. Car manufacturers such as Nissan, Honda, Mercedes-Benz, and Volkswagen warned of potential disruptions to their production due to a shortage of essential components from Nexperia. In the United States, there were even fears that production would come to a complete standstill within weeks if the export ban continued. The German automotive industry association VDA also expressed its concerns about “significant product restrictions in the near future, and possibly even production stoppages.” To address the acute problems, the VDA considered setting up a temporary information platform where manufacturers could anonymously exchange their chip stocks. Toyota, the world's largest car manufacturer, said it was not experiencing any major problems but acknowledged that production could ultimately be affected.

European response

In September 2025, the Dutch government took control of Nexperia under national security laws. Outgoing Minister of Economic Affairs Karremans feared that the director's actions would result in too much technological knowledge and intellectual property falling into Chinese hands, which he considered a threat to the European economy and security. The Enterprise Chamber of the Amsterdam Court of Appeal subsequently removed the director from his position. The EU also responded to the situation. European Commissioner Maroš Šefčovič planned further talks with Chinese officials following a meeting in Brussels on October 27, 2025, during which China's ban on Nexperia exports and restrictions on the supply of rare earth metals were discussed.

Nexperia's position

Stefan Tilger, the interim director of Nexperia, stated that he had suspended wafer deliveries to the Dongguan factory due to the local management's failure to meet contractual payment terms. Nexperia manufactures some of its chip wafers in Manchester, UK. The company previously owned another factory in South Wales, but was blocked by the British government from acquiring Newport Wafer Fab on national security grounds. The current situation remains complex, with both economic and political interests at play. The partial resumption of exports is a positive development, but the full impact and further developments remain uncertain.