Some Nexperia chip shipments resume as Germany welcomes 'de-escalation'

(Corrects paragraph 10 of November 7 story to show that Volkswagen's China chief said the industry as a whole, not VW specifically, had received its first consignments of chips) By Rachel More, Christina Amann and Daniel Leussink BERLIN/TOKYO (Reuters) -Semiconductor maker Nexperia has resumed some shipments of its vital chips, auto executives said on Friday, with Germany welcoming signs of de-escalation in a fight for control of the company that has rattled the car industry. Nexperia, Chinese-owned but based in the Netherlands, makes billions of simple but ubiquitous chips for cars and other electronics. Supply of those chips has been snarled since a dispute between Amsterdam and Beijing over technology transfers amid a broader U.S.-China trade war. "The de-escalation and continuation of negotiations between the Netherlands and China are very welcome at this point," said a spokesperson for the economy ministry in Germany, Europe's biggest car manufacturer. The ministry remains hopeful that "short-term individual permits will quickly reach the industry", allowing Nexperia's chip shipments to resume, the spokesperson added. German Chancellor Friedrich Merz said there were positive signals that deliveries could restart, "possibly within the next few hours". The Dutch government took control of Nexperia on September 30, saying its Chinese owner Wingtech, was planning to move the company's European production to China and that this would pose a threat to European economic security. China responded by cutting off exports of the company's finished chips, which are mostly packaged in China. It said however this weekend it would begin accepting applications for exemptions, following a meeting between U.S. President Donald Trump and Chinese President Xi Jinping. AUMOVIO, VOLKSWAGEN, HONDA REPORT MOVEMENT IN DELIVERIES Germany's Aumovio, one of the automotive suppliers facing pressure on supply chains, has secured deliveries of Nexperia's chips from China, Aumovio's chief executive told Reuters on Friday. It was the first supplier to confirm an exemption had been approved from Chinese export controls put in place after the Netherlands seized control of Nexperia, citing concerns about its Chinese parent Wingtech. The car industry has received its first deliveries of chips, Volkswagen's China chief told German daily Handelsblatt. "After the agreement with the United States, the Chinese Ministry of Commerce reacted quickly and announced that it would grant short-term special permits," said Ralf Brandstaetter, board member for China at Europe's largest carmaker. How sustainably this system will function, he said, depends in particular on relations between the United States and China.  Honda, Japan's second-largest automaker, also reported signs of movement in deliveries. "As of now, we have received information that shipments have started in China," Honda Executive Vice President Noriya Kaihara said. "Looking ahead, it is difficult to say anything definitive," he said, adding the company was working towards resuming production at affected sites from late next week.  Honda suspended output at a Mexican plant last week and adjusted operations in the U.S. and Canada. THREAT TO AUTO PRODUCTION IF NO SOLUTION FOUND Nexperia said it couldn't confirm that its chip supplies had restarted. However, "we would assume that the flow of our products can resume soon" now that the Chinese trade ministry had said it would issue exemptions, a spokesperson said. Wingtech declined to comment. Automotive suppliers like Aumovio and ZF rushed to apply for exemptions while preparing to furlough workers at production sites if no solution was found. European carmakers like Volkswagen cautiously held onto their 2025 forecasts in the third quarter as they limp towards the end of another bruising year, but have warned of looming chip shortages in their supplier networks. ($1 = 0.8575 euros) (Additional reporting by Bernadette Hogg, Thomas Seythal, Christoph Steitz, Alexander Ratz, Toby Sterling and Sarah Marsh. Editing by Emelia Sithole-Matarise and Mark Potter)

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