Copyright reuters
CompaniesFord Motor CoGeneral Motors CoNissan Motor Co Ltd WASHINGTON, Oct 31 (Reuters) - The White House plans to announce that Dutch chipmaker Nexperia’s China facilities will resume shipments, a source familiar with the situation told Reuters, in a key boost for auto manufacturers worldwide. The company produces large volumes of chips in the Netherlands that are widely used in autos and consumer electronics. Some 70% of the Netherlands-produced chips are packaged in China and sold mostly to distributors. Advertisement · Scroll to continue Since earlier this month, Nexperia has been locked in a dispute with its Chinese unit after the Dutch government took control of Nexperia from its Chinese owner Wingtech Technology (600745.SS), opens new tab on September 30. It also removed its Chinese CEO, citing concerns its technology could be appropriated by Wingtech. On October 4, China's commerce ministry blocked Nexperia from exporting chips from China. Reuters reported Friday that Nexperia suspended supplies of wafers to its Chinese assembly plant, according to a letter addressed to its customers, which could exacerbate a supply squeeze that is worrying automakers. Advertisement · Scroll to continue The White House is expected to release a fact sheet later on Friday offering more details on its Chinese trade agreement. Court filings showed that the seizure by the Dutch government came as U.S. pressure was rising on Nexperia after Wingtech was placed on a restricted-export list, though Dutch authorities say governance shortcomings were the trigger. Industry bodies have sounded the alarm over the possible impact on production, with Stellantis (STLAM.MI), opens new tab, which makes Jeep SUVs, saying on Thursday that it had set up a "war room" to monitor the situation. Japanese automaker Nissan (7201.T), opens new tab said it had enough chips at the moment to last until the first week of November without disruption. Ad Break Coming Up NEXT StayNext OffEnglish 180p288p360p480p540p576p720pHD1080pHDAuto (180p) About ConnatixV2131534911 About ConnatixV2131534911 Continue watchingafter the adVisit Advertiser websiteGO TO PAGE Reporting by David Shepardson; editing by Chris Sanders and Scott Malone Purchase Licensing Rights Zoom in on the key points of this story with Reuters AI
