Washington, D.C. – The White House is set to announce that Nexperia’s China-based facilities will resume shipments of semiconductors, providing relief to global automakers who had faced potential production halts due to the export disruption. The announcement follows a trade truce reached between U.S. President Donald Trump and Chinese President Xi Jinping during the recent summit in South Korea.

The move comes after the Dutch government seized control of Nexperia, a company owned by Chinese firm Wingtech, earlier this month. The seizure prompted Beijing to temporarily block Nexperia chip exports, raising alarms in the automotive sector worldwide.

Importance of Nexperia Chips to the Auto Industry

Nexperia manufactures basic, low-cost power control chips, including transistors and diodes, widely used in both automotive and consumer electronics. Although inexpensive—costing only a few cents each—these chips are essential for critical car components such as:

• Battery-to-motor connections
• Lighting and sensors
• Braking systems and airbag controllers
• Entertainment systems and electric windows

Some 70% of Nexperia’s Netherlands-produced chips are packaged in China before being sold to distributors, making resumption of shipments crucial for global supply chains. Automakers, including Honda, Stellantis, and Nissan, had warned that production could face significant disruption without a stable chip supply.

“Honda suspended production at a Mexican plant and has begun adjusting output in the U.S. and Canada,” a company spokesperson confirmed.
Stellantis has established a “war room” to monitor the situation, while Nissan indicated it has enough chips to maintain production until early November.

China’s Response

The Chinese Commerce Ministry appeared to confirm the resumption of exports, stating that it will consider exemptions for Nexperia shipments.

“As a responsible major country, China fully considers the security and stability of domestic and international production and supply chains. We will comprehensively consider the actual situation of the enterprise and exempt eligible exports,” the ministry said.

The statement underscores Beijing’s focus on balancing national security concerns with global supply chain stability, particularly in the semiconductor and automotive sectors.

Broader Implications for U.S.-China Trade

The resolution of the Nexperia issue is part of a broader trade truce between the U.S. and China, which also includes commitments on other semiconductor exports and industrial cooperation. The White House is expected to release a fact sheet soon with more details on the agreement.

Industry analysts note that maintaining steady chip supplies is critical for U.S. auto manufacturing, where even minor disruptions can halt production lines and affect thousands of jobs. The Nexperia case highlights the growing geopolitical complexity of semiconductor supply chains, as well as the interconnected nature of global manufacturing.