Merz says Nexperia chip deliveries to resume after talks with China

The chip crisis, caused by the halt in deliveries from manufacturer Nexperia, will probably soon be resolved, German Chancellor Friedrich Merz said on Friday on the sidelines of the climate summit in Belém, Brazil.

“It appears that the way is now open for a resumption of deliveries,” Merz said.

There have been supply problems at Nexperia, the Dutch subsidiary of a Chinese company, after the Dutch government took control of the company in Nijmegen, in the eastern Netherlands. The Dutch government blamed the decision on Chinese mismanagement.

Beijing then halted exports of products from Nexperia factories in China, such as chips for the automotive industry, sparking serious concerns in Germany about shortages that could affect production.

But Merz said there were “positive signals that deliveries can resume” after the negotiations. “It could happen in the next few hours,” he added.

The German chancellor said he had spoken with Dutch Prime Minister Dick Schoof in Brazil.

According to the Bloomberg news agency, Schoof said China had agreed to resume deliveries of Nexperia chips from factories in the country.

“We have been informed by China that it will allow the resumption of deliveries from Nexperia’s Chinese factories,” Schoof said in Belém.

“We don’t yet know how soon they will be delivered, but I consider it an important message, and the Chancellor of course welcomed this message, because it is important for Germany.”

Ralf Brandstätter of German carmaker Volkswagen told the Handelsblatt newspaper that China’s Commerce Ministry had announced it would grant temporary exemptions.

“The first exports have already taken place,” Brandstätter said. “How quickly and sustainably this system works depends primarily on the stability of relations between the United States and China.”