China Considers Brazil Exceptions to Ease Chip Squeeze From Nexperia Dispute

Overview

• The Chinese ambassador told Vice President Geraldo Alckmin that Brazilian firms can seek exemptions to restart semiconductor exports, according to a government note.
• Automakers’ group Anfavea said companies may apply through the Chinese Embassy or directly to China’s Commerce Ministry, with licenses assessed individually.
• Pressure on supplies stems from the Dutch government’s Sept. 30 takeover of Nexperia from Wingtech, reported Chinese blocks on its product exports, and a Reuters-sighted letter saying Nexperia halted wafer shipments to its Chinese assembly plant.
• EU tech chief Henna Virkkunen met Nexperia and invited the company to the Chips Act taskforce as Brussels pursues a diplomatic resolution.
• Reuters also reported, citing a source, that the White House planned to announce shipments from Nexperia’s China facilities would resume, while risks to global automakers remain given that a large share of Dutch-made chips are packaged in China.