KATHMANDU: The U.S. and China have agreed to resume shipments of key auto chips from Dutch company Nexperia, ending weeks of disruption in global car production, according to global media reports.
The deal was reached during talks between U.S. President Donald Trump and Chinese President Xi Jinping. Nexperia had stopped sending chips after the Dutch government took control from its Chinese owner, Wingtech, citing national security concerns.
China has now agreed to allow shipments from Nexperia’s Chinese factories to resume. Nexperia manufactures essential semiconductor components such as diodes, voltage regulators, and transistors parts that play a vital role as modern vehicles become more electronics-driven.
These chips are primarily used in automobiles but are also found in industrial equipment and everyday consumer electronics. The shortage had already forced automakers like Honda to pause production in North America.
The Trump-Xi meeting also brought a temporary trade truce, with the U.S. reducing some tariffs and China promising action against illegal chemical exports.
Nexperia makes about $2 billion in annual revenue, most of it from the auto industry. The company produces the chips in Europe, sends them to China for final processing, and then re-exports them to its European clients.
