Netherlands-based chipmaker Nexperia is at the heart of a standoff between the European Union, the U.S. and China that has triggered a near-crisis for global automakers.
The Dutch government seized control of Nexperia, owned by the Chinese company Wingtech, in October, citing national security concerns. The move prompted Beijing to block Nexperia products from leaving China.
Meetings are underway in Europe Saturday to attempt to defuse the escalating issue, and Chinese and U.S. authorities appear to be opening up a pathway for Nexperia’s China-based operations to resume exporting critical automotive chips.
For now, however, the auto industry’s supply chain still hangs in the balance.
The dispute is threatening vehicle production worldwide as automakers warn of looming shortages of the chipmaker’s components, which are critical to basic electrical functions in cars and challenging to replace on short notice.
