Volkswagen says Nexperia chip supply has resumed
News Summary
Volkswagen's China chief has stated that the automaker has received its first deliveries of chips from Chinese-owned semiconductor manufacturer Nexperia, following a supply outage. The disruption began when the Dutch government seized control of Nexperia on September 30, as part of a broader U.S.-Chinese trade war, prompting China to block exports of its products from October 4. Nexperia welcomed the news that, under a U.S.-China agreement, it will not be subject to U.S. export restrictions for one year. China has also indicated it will allow exports on a case-by-case basis. Ralf Brandstaetter, Volkswagen's board member for China, noted that China's Ministry of Commerce reacted quickly to the agreement, announcing short-term special permits. He added that while VW's production in China is currently unaffected, the overall situation creates uncertainty, largely dependent on the trajectory of U.S.-China relations.
Background
Nexperia is a Netherlands-based semiconductor manufacturer controlled by Chinese entities, producing chips widely used in industries such as automotive. In September 2025, the Dutch government seized control of Nexperia, a move largely seen as a ripple effect of U.S. pressure in its technological competition with China, and part of the broader U.S.-Chinese trade and tech war. Following this, the Chinese government retaliated by banning exports of Nexperia's products in October, raising supply chain concerns for global automakers, including Volkswagen, who rely on these chips. With President Donald J. Trump's re-election, technological competition and trade friction between the U.S. and China remain highly elevated, making semiconductor supply chains a critical battleground in the strategic rivalry.
In-Depth AI Insights
Does this agreement signal a strategic shift in the U.S.-China trade and tech war under the Trump administration? - This appears to be a tactical de-escalation rather than a fundamental strategic shift. The one-year exemption for Nexperia indicates a pragmatic, temporary truce aimed at alleviating immediate supply chain pressures on politically sensitive key industries (like automotive), particularly at the outset of President Trump's new term, where excessive disruption in certain sectors is undesirable. - The