White House Nears Deal Allowing Nexperia’s China Plants to Resume Chip Shipments

The White House is reportedly preparing to announce that Dutch semiconductor firm Nexperia will be allowed to resume chip shipments from its China facilities, easing fears of production cuts among global automakers. The move follows an agreement reached between U.S. President Donald Trump and Chinese President Xi Jinping during a recent summit in South Korea, signaling a potential easing of U.S.-China trade tensions.

Earlier this month, the Dutch government seized control of Nexperia, which is owned by China’s Wingtech, citing governance concerns. In response, Beijing blocked exports of Nexperia chips from China, disrupting global supply chains. Nexperia manufactures millions of low-cost power control semiconductors—such as diodes and transistors—used in nearly every electronic device, including automobiles, consumer electronics, and industrial systems.

Around 70% of Nexperia’s Dutch-made chips are packaged in China before being sold to distributors worldwide. The Chinese Commerce Ministry confirmed that it would consider export exemptions for Nexperia, stating that China “fully considers the security and stability of domestic and international production and supply chains.” Companies struggling with part shortages were urged to contact authorities for assistance.

The supply halt has already begun to affect the automotive industry. Honda has suspended operations at a plant in Mexico and adjusted production in the U.S. and Canada. Stellantis, maker of Jeep SUVs, established a “war room” to monitor the crisis, while Nissan said its current chip stock would last only until early November.

The seizure of Nexperia and the resulting export freeze came amid U.S. pressure on Wingtech, which was added to a restricted export list. Industry groups warn that without swift resolution, global auto production could face severe disruptions, underlining how critical even the smallest semiconductor components are to modern manufacturing.