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China Eases Nexperia Export Curbs After Busan Talks as Auto Chip Strain Lingers

Partial reopenings leave unresolved payment hurdles, with substitutions proving slow.

Bikes are parked next to Nexperia (China) Ltd's factory amidst a shortage of chip supply caused by a diplomatic standoff between China and Netherlands over the company, in Dongguan, Guangdong province, China, November 7, 2025. REUTERS/Maxim Shemetov

Overview

  • The Netherlands reversed course on its late‑September move to take control of Nexperia’s Dutch unit, signaling a potential breakthrough in the dispute.
  • China began granting case‑by‑case export licenses after President Donald Trump met Xi Jinping in Busan, enabling some shipments from Nexperia’s Dongguan plant to resume.
  • Shortages of Nexperia’s low‑cost chips pushed Nissan and Honda to cut vehicle production and led Bosch to reduce working hours before limited exports eased immediate pressure.
  • Nexperia shifted some sales to yuan payments, creating backlogs at the plant, while customers such as Melecs and JABIL sourced parts by settling through Chinese entities.
  • Because many of these components are soldered into auto modules, replacement requires lengthy testing, and European manufacturers are pressing suppliers to develop non‑China alternatives.