EU says 'worst-case scenario avoided' as China moves to restart Nexperia chip exports

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Dutch-headquartered company cut off from its Chinese processing facilities following a dispute between The Hague and Beijing, threatened to throw Europe's automotive industry into disarray.Dutch authorities ousted the Chinese-owned company's management on September 30, claiming that they had become aware of plans to move production of one of Europe's premier chipmaking facilities to China.Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.Unsealed Dutch court documents showed that the US government had threatened to add Nexperia's Netherlands subsidiary to a blacklist on October 1, unless the Chinese management was removed, prompting rampant speculation as to how much pressure from Washington informed The Hague's unprecedented intervention.In response, Beijing put restrictions on what Nexperia products could be shipped out of the country, where 70 per cent of the company's chips - vital to car manufacturing - are processed and tested, sending panic through European industry.Nexperia supplies chips to nearly every major European carmaker, producing tens of billions annually. While its chips are not considered cutting edge, they have been described as the "salt and pepper" of semiconductors, integral to the industry's health."Industry indications are that Mofcom has been engaging with EU companies in recent days to restore the partial flow of chips. This is a welcome development, which avoids a worst-case scenario and creates time and space for China and the Netherlands to find a stable, lasting solution," EU trade spokesman Olof Gill told the Post on Tuesday."We welcome the constructive approach shown by the Netherlands and China," he added.Business sources said that Mofcom has requested that EU companies get in touch if they require chips, but cautioned that there was no clarity as to how smooth the process would be. Industry is already reeling from long delays in the ministry's granting of licenses for rare earth exports.While Gill would not comment on what galvanised the development, it came days after the White House published a statement claiming the crisis was resolved during a US-China leaders summit last Thursday.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,827.51 +55.96 (+0.83%)Dow 3047,390.83 +305.59 (+0.65%)Nasdaq23,612.89 +264.25 (+1.13%)Russell 20002,467.11 +39.77 (+1.64%)VIX17.46 -1.54 (-8.11%)Gold3,993.60 +33.10 (+0.84%)PortfolioSign in to access your portfolioSign inTop gainersLMND Lemonade, Inc. 79.18 +20.52 (+34.98%)SEDG SolarEdge Technologies, Inc. 41.20 +9.38 (+29.48%)TDC Teradata Corporation 26.45 +5.74 (+27.69%)LITE Lumentum Holdings Inc. 238.04 +49.68 (+26.36%)VCYT Veracyte, Inc. 45.15 +9.03 (+24.99%)Top losersSLNO Soleno Therapeutics, Inc. 44.12 -19.73 (-30.91%)TREX Trex Company, Inc. 33.46 -13.58 (-28.89%)PINS Pinterest, Inc. 25.85 -7.07 (-21.47%)PRGO Perrigo Company plc 15.90 -4.29 (-21.25%)ACMR ACM Research, Inc. 31.51 -7.39 (-19.00%)Most activeRIVN Rivian Automotive, Inc. 15.46 +2.95 (+23.64%)NVDA NVIDIA Corporation 201.03 +2.33 (+1.18%)PLUG Plug Power Inc. 2.6100 +0.0900 (+3.57%)PLTR Palantir Technologies Inc. 187.40 -3.30 (-1.73%)PFE Pfizer Inc. 24.51 +0.20 (+0.84%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersRIVN Rivian Automotive, Inc. 15.49 +2.99 (+23.88%)LMND Lemonade, Inc. 79.52 +20.86 (+35.57%)PINS Pinterest, Inc. 25.90 -7.01 (-21.32%)SLDP Solid Power, Inc. 8.63 +3.01 (+53.61%)TEVA Teva Pharmaceutical Industries Limited 24.97 +4.51 (+22.02%)Top economic events