China to allow Nexperia chip exports for civilian use
What's the story
China has announced an exemption for the export of Nexperia chips meant for civilian use, as per a statement from its commerce ministry today. The move comes as Beijing awaits concrete steps from the Netherlands to settle a dispute over these chips. The ongoing issue has led to shortages and impacted car production.
Diplomatic pressure
China urges Netherlands to take concrete actions
The Chinese government has expressed its expectation for the Netherlands to take concrete actions toward resolving the Nexperia dispute. The commerce ministry's statement also welcomed European efforts to persuade the Dutch government into correcting what it termed as "wrongful" practices. These actions are likely part of China's efforts to address supply chain concerns.
Workings
How does Nexperia operate?
Nexperia's chips, while not very technically sophisticated, are made in large volumes. The firm's biggest manufacturing site is in Germany. However, more than 70% of its processors are sent back to China for packaging in Dongguan. It is a manufacturing hub located in Guangdong province.