Beijing has just allowed companies to apply for exemptions from its Nexperia export ban, allowing those relying on its chips to resume orders finally. China previously banned exports from the company's local subsidiary about a couple of weeks ago, in response to the Dutch government seizing control of the chipmaker from its Chinese parent, Wingtech. According to the South China Morning Post, the Chinese Ministry of Commerce (MOFCOM) will consider exemptions as automakers worldwide experience disruptions.
Although Nexperia isn’t as big as TSMC or Samsung, it’s a niche supplier of automotive semiconductors, holding about 40% of the market. With the average modern car containing about 1,500 chips, supply chain instability can stall production and cause assembly lines halfway across the world to cease operation.
