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(Sharecast News) - China has relaxed export controls on chips made by Wingtech subsidiary Nexperia in a sign of easing trade tensions between Beijing and the European Union.
The move will alleviate fears of an imminent supply shortage across the global auto industry, which relies on Nexperia's inexpensive but foundational chips that are crucial to everything from anti-lock braking systems and lighting control to advanced driver assistance systems and infotainment setups.
Beijing has now agreed to hold further talks with the Dutch government as the two sides work on "constructive solutions" to resolve a dispute over Nexperia's operations in the Netherlands.
Last month, the Dutch government seized control of Nexperia's Dutch facilities to safeguard access to semiconductors and "crucial technological knowledge and capabilities". The Ministry of Economic Affairs invoked the so-called Goods Availability Act following recent signs of "serious governance shortcomings and actions" within the Nexperia business.
The government said it was attempting to prevent a situation in which goods produced by Nexperia - a key supplier to the European auto and consumer electronics industries - become "unavailable in an emergency".
China then responded by blocking the export of parts made from Nexperia's factories in China.
"Close engagement with both the Chinese and Dutch authorities continues as we work towards a lasting, stable predictable framework that ensures the full restoration of semiconductor flows," said EU trade commissioner Maros Sefcovic in a post on X.
Shares in Wingtech jumped 3% to CNY46.36 in Shanghai on Monday.
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