EU forced to exempt banned Chinese chipmaker after auto industry warns of supply crisis — European car factories warn of imminent supply chain collapse

The European Commission is considering a temporary exemption from its latest Russia sanctions for a Chinese chipmaker, likely Yangzhou Yangjie Electronic Technology.

European automakers warned their semiconductor inventories could run out within weeks, risking production stoppages across the region.

The move follows supply disruption linked to Nexperia and related chip flow problems, which have already strained auto supply chains.

Any carve-out would need approval from all EU member states and could help keep European car factories running.