EU may exempt sanctioned Chinese chipmaker to fill Nexperia gap

The European Commission is considering a temporary exemption for sanctioned chipmaker Yangjie to avert new shortages at European automakers.

Industry sources say carmakers’ chip inventories could run out within weeks, risking production slowdowns or stoppages.

The proposal would need unanimous approval from EU member states and comes amid ongoing supply strain tied to Nexperia.

The case underscores the EU’s challenge of balancing Russia sanctions with the auto sector’s dependence on Chinese semiconductor supply chains.