White House Clears Dutch Chipmaker Nexperia to Restart China Operations

Dutch chipmaker Nexperia is set to resume its shipments from its Chinese facilities, a move crucial for global auto manufacturers. This decision follows a suspension of wafer supplies to China, triggered by a governmental dispute after Nexperia was seized from its Chinese owner due to technology appropriation concerns.

The White House is set to announce that Dutch semiconductor company Nexperia will resume shipments from its Chinese facilities, according to a source familiar with the situation, Reuters reports. This development is crucial for the global automotive industry, which relies heavily on these chip supplies.

Nexperia had halted wafer shipments to its Chinese assembly plants, sending shockwaves through automakers concerned about potential supply chain disruptions. This suspension followed the Dutch government's recent takeover of Nexperia from its Chinese owner, Wingtech Technology, citing fears of technology misappropriation. The removal of Nexperia's Chinese CEO was part of this move.

Chips produced by Nexperia in the Netherlands are predominantly packaged in China, with roughly 70% entering global distribution channels for use in vehicles and consumer electronics. More details on this trade development between the U.S. and China will be provided by the White House in an upcoming fact sheet.

(With inputs from agencies.)