Nexperia microchips are leaving China again, easing a shortage of simple but widely used parts in the auto industry.
German auto supplier Aumovio, which was recently spun off from tire giant Continental, said Friday that the Chinese-Dutch company's semiconductors and the components that contain them are on their way from China to Aumovio's distribution center in Hungary.
The shipments are the first clear sign that Nexperia chip shipments are flowing more freely since last week's meeting between President Trump and Chinese leader Xi Jinping in South Korea. China's Ministry of Commerce said on Saturday it would issue export licenses in permissible cases.
Beijing took steps to halt exports of Nexperia chips last month after the Dutch government took control of the company from its Chinese owner Wingtech, citing economic security risks. Nexperia, which is based in the Netherlands, sends most of its products to facilities in China for packaging and testing before being shipped to customers.
The move has prompted a series of warnings from automakers that they will have to shut down operations due to dwindling stocks of parts containing Nexperia chips, which are used in everything from lighting to electronics.
Although Nexperia is a small player in the overall automotive chip market, it is the market leader for a core chip category consisting mainly of transistors and diodes.
The Dutch government raised hopes of a breakthrough on Thursday, citing “constructive“ talks with Beijing.
“The Netherlands believes that shipments of chips from China to Europe and the rest of the world will reach Nexperia customers in the coming days,“ Dutch Economy Minister Vincent Karemans said.
So far, Honda is the only major automaker to say it has curtailed production due to a shortage of chips. Last week, it halved production at a plant in Alliston, Canada, where workers assemble Civic sedans and CR-V sports cars.
The problem was among the reasons the Japanese automaker cited for cutting its annual profit outlook on Friday. The company said North American production would be 110,000 fewer vehicles in the current fiscal year than previously expected.
Other automakers have warned they are working week after week to ensure sufficient supplies of automotive electronics that contain Nexperia chips, while urging politicians to resolve the situation.
The diplomatic breakthrough came after the Trump-Xi meeting last week, when the US agreed to delay a September move to impose tougher trade restrictions on certain subsidiaries of blacklisted Chinese entities.
The Dutch took control of Nexperia a day after the US said it would expand its trade blacklist. Wingtech was added to the blacklist last year, meaning Nexperia could face the same trade restrictions as its Chinese parent.
Aumovio, which integrates Nexperia chips into more than 100 components including displays and sensors, received an export license verbally on Wednesday and in writing on Thursday, according to a spokesman. Its shipments to Europe pave the way for the resumption of affected parts supplies to automakers.
Bosch, another major German auto parts supplier, has also received permission to export chips from China, according to a person familiar with the situation.