Trump could give automakers relief from Nexperia chip shortage

By Claudia Assis

The White House and China have reached an agreement to resume Nexperia shipments, WSJ reports

A semiconductor wafer sample. The Chinese government had blocked some shipments from Nexperia, threatening to upend the auto industry.

The Trump administration and the Chinese government have reached an agreement to resume chip shipments from semiconductor company Nexperia, the Wall Street Journal reported late Friday, citing people familiar with the matter.

The resumption is part of a trade agreement reached this week between the U.S. and China, the Journal reported. Details of the deal were expected to be included in a fact sheet that the White House would release later on Friday, the report said.

Related: Automakers are bracing for a chip crisis that could roil production

The Netherlands took control of Nexperia, a key automotive-microchip maker owned by China's Wingtech Technology (CN:600745), in September. In response, the Chinese Ministry of Commerce blocked exports of some Nexperia products.

The company is responsible for around 5% of the global automotive silicon-discrete market, according to S&P Global Mobility, and the shortage threatened to upend the automobile industry.

Nexperia mostly sells standard parts that are widely used but not technologically advanced, with hundreds of chips often needed per vehicle. Some automakers had slowed down production, and many had expressed concerns about their production.

The industry went through a prolonged and more dire chip shortage during the pandemic, which became emblematic of global supply-chain disruptions. At the time, U.S. automakers would partially build their vehicles and wait for chips to be installed later.

-Claudia Assis

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10-31-25 1823ET