EU claims agreement with China to unblock Nexperia chip flow

The European Commission claimed on Saturday that it has reached an agreement with China’s commerce ministry 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 will 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,” he added.

“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.”

Dutch-headquartered Nexperia was cut off from its Chinese processing facilities following a dispute between The Hague and Beijing, threatening to throw Europe’s automotive industry into disarray.

South China Morning Post