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Robert Delaney

The European Commission claimed on Saturday to have reached an agreement with China’s Ministry of Commerce to restart the flow of semiconductors that had been disrupted by a crisis surrounding the company Nexperia.
EU trade chief Maros Sefcovic said on social media that, effective immediately, exports of the company’s chips to the bloc for non-military uses would not be subject to Chinese licensing requirements.
“My team and I have been in constant contact with the Chinese authorities, and welcome the confirmation provided today to the European Commission by Mofcom regarding the further simplification of export procedures for next-period chips destined for EU and global clients,” Sefcovic said.
“Mofcom will grant exemptions from licensing requirements to any exporter, provided that it is declared that the goods are intended for civilian use.
“Close engagement with both the Chinese and Dutch authorities continues as we work towards a lasting, stable, predictable framework that ensures the full restoration of semiconductor flows.”
The ministry confirmed the exemptions on Sunday and urged Brussels to continue to push the Netherlands to “promptly correct wrongful practices”.
Responding to Sefcovic’s remarks, the ministry said China had taken measures to grant exemptions for exports that complied with civilian use.
“The source and responsibility for the current chaos in the global semiconductor supply chain lie with the Dutch side. China has noted that the European side has expressed its intention to engage with the Dutch side,” it said.
“We hope the European side will further intensify its efforts and urge the Dutch side to revoke the relevant measures as soon as possible, ensuring the normal supply of related products from Nexperia.”
Dutch-headquartered Nexperia was cut off from its Chinese processing facilities following a dispute between The Hague and Beijing, threatening to throw Europe’s car industry into disarray.
Some 70 per cent of the company’s chips – vital to car manufacturing – are processed and tested in China.
After Beijing introduced its export controls, the European fabrication facilities under the Dutch chipmaker’s head office suspended the supply of wafers to its Chinese units in late October, exacerbating the supply chain crunch.
The dispute started when Dutch authorities ousted the Chinese-owned company’s management on September 30, claiming that they had become aware of plans to move production of one of Europe’s premier chipmaking facilities to China.
That move came a day before the company was due to be added to Washington’s “entity list” of companies restricted from doing trade with US companies, citing national security concerns and invoking a law that had been sitting idle since 1952.


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China-EU relations

EU claims agreement with China to unblock Nexperia chip flow

An employee works with a wafer in a production line of Dutch semiconductor company Nexperia in Hamburg, Germany. File photo: Reuters

Nexperia saga sees wary German auto firms scramble to mitigate chip shortage

Chairman and CEO of Volkswagen Group China Ralf Brandstatter (centre) is seen at the China International Import Expo in Shanghai on Wednesday. A Volkswagen source said it will “take appropriate measures in response to further developments” amid the Nexperia semiconductor crisis that has roiled the auto chip supply chain. Photo: AFP

Nexperia fallout: Dutch-Chinese chip debacle reignites EU debate over foreign investments

The Hague seized control of Nexperia from its Chinese owners on September 30, citing national security concerns and invoking a law that had been sitting idle since 1952. Photo: dpa

An employee works with a wafer on a production line of Dutch semiconductor company Nexperia, in Hamburg, Germany, on June 27, 2024. Photo: Reuters

EU says ‘worst-case scenario avoided’ as China moves to restart Nexperia chip exports

The head office of Chinese-owned chipmaker Nexperia is seen in Nijmegen, Netherlands, on October 14, after the Dutch government took control of the semiconductor company over governance shortcomings. Photo: AP

EU Commissioner for Trade and Economic Security, Interinstitutional Relations and Transparency Maros Sefcovic looks on during a press conference on the EU-US tariffs deal at the European Commission in Brussels, on August 21. Photo: Agence France-Presse

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China will waive licensing requirements ‘provided that it is declared that the goods are intended for civilian use’, EU trade chief says


China will waive licensing requirements ‘provided that it is declared that the goods are intended for civilian use’, EU trade chief says.


EU claims agreement with China to unblock Nexperia chip flow

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}China will waive licensing requirements ‘provided that it is declared that the goods are intended for civilian use’, EU trade chief says

China will waive licensing requirements ‘provided that it is declared that the goods are intended for civilian use’, EU trade chief says