The United States and China have agreed to resume chip shipments from the Asian country-based facilities of Dutch company Nexperia, The Wall Street Journal reported, citing its sources.
According to them, the agreement was reached at a meeting between US President Donald Trump and Chinese President Xi Jinping in Busan, South Korea. The White House, which is preparing to publish a document clarifying the details of the trade agreement between Washington and Beijing, will officially announce the resumption of Nexperia chip shipments.
Nexperia produces microchips for European automotive and consumer electronics. The supply problems of its products have already begun to affect the automotive industry and threaten large-scale production disruptions, The Wall Street Journal reports.
On October 12, the Dutch Ministry of Economic Affairs announced that the “stock availability law“ - a measure used in exceptional cases to protect strategic assets - had been applied against Nexperia, a company owned by the Chinese concern Wingtech. Two days later, the Amsterdam Court of Appeal ruled to remove Nexperia CEO Zhang Xuezhen from his position and appoint an interim director in his place.
All but one of Nexperia Holding's shares were transferred to an independent manager. In response, according to Bloomberg, China imposed export restrictions on Nexperia, banning the company's Chinese subsidiary and its subcontractors from exporting certain components outside the country.