China has said it will relax its restrictions on exporting semiconductor chips to Europe after a diplomatic row with the Netherlands over the state takeover of Nexperia, a Chinese-owned chipmaker based in the country.
In September, Dutch authorities invoked a Cold War-era law to seize control of Nexperia, citing “serious governance shortcomings” and concerns about the security of semiconductor supplies in the event of a crisis.
Beijing responded angrily at the time, banning the re-export of completed Nexperia chips from China to Europe — a move that alarmed European carmakers who rely heavily on these components.
Around 70% of chips made in the Netherlands are sent to China for final processing before being shipped to other countries. The ban had threatened to disrupt this supply chain and potentially stall vehicle production across Europe.
However, in a statement on Saturday, China’s Ministry of Commerce said it would “comprehensively consider the actual situation of enterprises and grant exemptions to exports that meet the criteria.” The statement did not clarify what conditions companies would need to meet to qualify for these exemptions.
Beijing also accused the Dutch government of “improper interference in the internal affairs of enterprises,” saying the takeover had contributed to “the current disruption of global production and supply chains.”
The Dutch-controlled Nexperia confirmed to customers that it had stopped sending chips back to China for processing, according to a letter seen by Reuters earlier this week.
Last month, the European Automobile Manufacturers’ Association (ACEA) warned that European factories could run out of essential chips within weeks if the ban was not lifted. The group said the shortage risked halting production lines and causing widespread disruption in the automotive sector.
The easing of China’s restrictions comes just days after US President Donald Trump met with Chinese President Xi Jinping in South Korea, where the two leaders reportedly discussed technology and trade relations.
Trump later told reporters that the meeting covered chip supply issues, though Beijing’s official statement did not directly reference the subject. The White House is expected to publish a fact sheet outlining a new trade understanding with China, which may include confirmation of the resumed exports.
In December 2024, the US government placed Chinese chipmaker Wingtech — which owns Nexperia — on its “entity list,” labelling it a national security concern.
Nexperia has also faced scrutiny in the UK, where it was forced to sell its Newport wafer plant following a government review over national security risks. The company continues to operate a smaller facility in Stockport.
