The first shipments of Nexperia chips are already on their way to Europe after Beijing granted exemptions to its export restrictions, German auto suppliers told the Post, easing the pressure on the battered European car industry.

But supply chain risks remain as Beijing and The Hague have yet to hammer out a final deal to decide the chip firm’s fate and US-China tensions continue to linger in the background.

“The decision by the Chinese Ministry of Commerce to ease the previously existing export restrictions on Nexperia products for civilian-use chips, and to no longer require a special export license, brings us at least short-term relief,” a spokesman with German car part supplier ZF Friedrichshafen told the Post on Monday.

“We have successfully completed corresponding test shipments from China to locations in the European Union, the United Kingdom and North America, and preparations for further deliveries are under way,” he said.

The German supplier is in direct contact with Nexperia China to shore up the “long-term supply” by arranging shipments of additional batches of components, the spokesman said. The group is also still working on sourcing alternative products to stabilise its supply chain, he added.
The dispute over Nexperia first erupted in late September, when the Dutch government seized control of the chip company from its Chinese owners. In response, Beijing placed export restrictions on the firm’s chips – some 70 per cent of which are processed and tested in China – throwing Europe’s automotive industry into uncertainty.