November 05, 2025 /SemiMedia/ — EU trade commissioner Maros Sefcovic said talks between the EU, the Netherlands and China on Nexperia’s export block are making progress, raising hopes that Europe’s supply of basic power discrete chips could stabilise again.

Nexperia, owned by China’s Wingtech, is a top supplier of low-cost transistors and diodes used across automotive power, lighting and battery control. Europe’s auto makers have warned that even a short disruption could trigger production downtime because these devices underpin nearly every electronic sub-system in a vehicle.

China signalled it may consider carve-outs for certain export requests. German car supplier ZF said it is working with Chinese authorities to restore shipments. Another supplier, Aumovio, has already filed for exemptions. A German distributor said some shipment exceptions are possible, but only with specific MOFCOM approval.

European manufacturers have prepared contingency measures, including temporary furloughs, if inbound replenishment remains slow. EU officials are studying mid-term policy tools aimed at improving supply chain resilience and avoiding scenarios where a single regulatory action triggers region-wide disruption.