By David Shepardson
WASHINGTON (Reuters) – The White House plans to announce that Dutch chipmaker Nexperia’s facilities in China will resume shipments, a source familiar with the situation told Reuters, in a key boost for automakers around the world.
The company produces large volumes of chips in the Netherlands that are widely used in automobiles and consumer electronics. Around 70% of chips produced in the Netherlands are packaged in China and sold mainly to distributors.
Since earlier this month, Nexperia has been embroiled in a dispute with its Chinese unit after the Dutch government took control of Nexperia from its Chinese owner Wingtech Technology on September 30. It also ousted its Chinese CEO, citing concerns that Wingtech could hijack its technology.
On October 4, China’s Ministry of Commerce blocked Nexperia from exporting chips from China.
Reuters reported on Friday that Nexperia has suspended wafer supplies to its Chinese assembly plant, according to a letter to its customers, potentially exacerbating a supply shortage worrying automakers.
The White House is expected to release a fact sheet later Friday offering more details on its trade deal with China.
Court documents showed that the seizure by the Dutch government came as US pressure on Nexperia was increasing after Wingtech was placed on a restricted export list, although Dutch authorities say governance deficiencies were the trigger.
Industry bodies have raised the alarm about the possible impact on production, and Stellantis, which makes Jeep SUVs, said on Thursday it had set up a “war room” to monitor the situation.
Japanese automaker Nissan said it had enough chips right now to last until the first week of November without interruptions.
(Reporting by David Shepardson; editing by Chris Sanders and Scott Malone)