FRANKFURT (Reuters) -Volkswagen, Europe's biggest carmaker, has received its first deliveries of chips from Chinese-owned semiconductor manufacturer Nexperia following a supply outage, its China chief
Volkswagen says Nexperia chip supply has resumed
Volkswagen's Chip Supply Resumption
FRANKFURT (Reuters) -Volkswagen, Europe's biggest carmaker, has received its first deliveries of chips from Chinese-owned semiconductor manufacturer Nexperia following a supply outage, its China chief was cited as saying by German daily Handelsblatt.
Background on Nexperia
The Dutch government had seized control of Nexperia, which is based in the Netherlands, on September 30 as part of a broader U.S.-Chinese trade war, and the Chinese government blocked exports of its products from October 4, leading to a shortage of Nexperia chips widely used by carmakers.
Impact of U.S.-China Relations
Nexperia on Thursday however welcomed news that, under a U.S.-China agreement, it will not be subject to U.S. export restrictions for one year. China has also said it will allow exports on a case-by-case basis.
Short-term Export Permits
"There have already been initial exports," Ralf Brandstaetter, Volkswagen’s board member for China, was cited by Handelsblatt as saying.
Future Supply Stability
"After the agreement with the United States, the Chinese Ministry of Commerce reacted quickly and announced that it would grant short-term special permits."
How sustainably this system will function, he said, depends in particular on relations between the United States and China. While production in China by the carmaker is currently unaffected, the situation as a whole is creating uncertainty.
(Reporting by Philipp Krach; Writing by Sarah Marsh; Editing by Louise Heavens)
