By David Shepardson
WASHINGTON (Reuters) -The White House plans to announce that Dutch chipmaker Nexperia’s China facilities will resume shipments, a source familiar with the situation told Reuters, in a key
boost for auto manufacturers worldwide.
The company produces large volumes of chips in the Netherlands that are widely used in autos and consumer electronics. Some 70% of the Netherlands-produced chips are packaged in China and sold mostly to distributors.
Since earlier this month, Nexperia has been locked in a dispute with its Chinese unit after the Dutch government took control of Nexperia from its Chinese owner Wingtech Technology on September 30. It also removed its Chinese CEO, citing concerns its technology could be appropriated by Wingtech.
On October 4, China's commerce ministry blocked Nexperia from exporting chips from China.
Reuters reported Friday that Nexperia suspended supplies of wafers to its Chinese assembly plant, according to a letter addressed to its customers, which could exacerbate a supply squeeze that is worrying automakers.
The White House is expected to release a fact sheet later on Friday offering more details on its Chinese trade agreement.
Court filings showed that the seizure by the Dutch government came as U.S. pressure was rising on Nexperia after Wingtech was placed on a restricted-export list, though Dutch authorities say governance shortcomings were the trigger.
Industry bodies have sounded the alarm over the possible impact on production, with Stellantis , which makes Jeep SUVs, saying on Thursday that it had set up a "war room" to monitor the situation.
Japanese automaker Nissan said it had enough chips at the moment to last until the first week of November without disruption.
(Reporting by David Shepardson; editing by Chris Sanders and Scott Malone)
