Volkswagen’s board member for China, Ralf Brandstaetter, confirmed the development in an interview with Handelsblatt, noting that initial deliveries had resumed after a new agreement between Washington and Beijing temporarily eased export curbs on the company’s products.
“There have already been initial exports,” Brandstaetter said. “After the agreement with the United States, the Chinese Ministry of Commerce reacted quickly and announced that it would grant short-term special permits.”
Supply Outage from Trade Dispute
The supply disruption began after the Dutch government seized control of Nexperia on September 30, citing national security concerns amid heightened U.S.-China trade frictions. In retaliation, China blocked exports of Nexperia chips from October 4, triggering a shortage that hit global automakers reliant on the company’s components for their vehicles’ electronic systems.
Nexperia’s chips are widely used across the automotive industry, including in power management, safety systems, and sensor technologies. The export halt added to the pressure on manufacturers already grappling with global semiconductor shortages that have periodically disrupted vehicle production over the past three years.
Temporary Relief Under One-Year Deal
The situation began to ease this week after Nexperia announced it had been granted a one-year exemption from U.S. export restrictions as part of a bilateral arrangement between Washington and Beijing. The agreement allows China to approve exports of the company’s semiconductors on a case-by-case basis, restoring partial flow to international customers.
In a statement, Nexperia welcomed the decision, describing it as “an important step toward stabilizing the supply chain and maintaining customer confidence.”
Carmakers Cautiously Optimistic
Volkswagen confirmed that its production operations in China remain unaffected for now, though Brandstaetter cautioned that the broader outlook remains uncertain.
“How sustainably this system will function depends, in particular, on relations between the United States and China,” he said, highlighting the fragile balance underpinning global semiconductor supply chains.
Industry analysts say the temporary reprieve could help automakers recover short-term production targets, but warn that geopolitical risks continue to threaten long-term supply stability.
Background: Nexperia’s Strategic Importance
Originally founded in the Netherlands as a division of NXP Semiconductors, Nexperia was acquired in 2019 by Wingtech Technology, a Chinese electronics manufacturer. The company has since become a critical supplier to the global automotive sector, producing billions of essential chips annually from its European facilities.
The Dutch government’s decision to seize Nexperia’s assets marked a significant escalation in Western efforts to limit Chinese control over key technology infrastructure — a move aligned with U.S. policies to curb China’s access to advanced semiconductor technology.
With exports now resuming under special approval, automakers are watching closely to see whether this fragile arrangement can hold, or whether new tensions between Washington and Beijing could once again threaten the flow of critical components needed to keep global vehicle production running smoothly.