Dutch chipmaker Nexperia reportedly restarts Chinese supply; auto industry in focus

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Dutch chipmaker Nexperia's Chinese unit has resumed supplying semiconductors to local distributors, _Reuters _reported on Thursday.

The company had previously halted all shipments when Beijing banned exports following an ownership dispute.

But as part of the resumption, which is confined to domestic trade, all sales to distributors must now be settled in Chinese yuan, whereas transactions had previously only used foreign currencies such as the U.S. dollar, the report said.

The Chinese unit has also reportedly instructed distributors to transact with their customers only in yuan, in an apparent bid to stabilize supply in China and operate more independently from its Dutch parent.

Nexperia has also warned customers in China that it does not guarantee the quality of products sourced from its Chinese subsidiary, the report added.

A Dutch semiconductor manufacturer has meanwhile notified Japanese automobile component makers that it may not be able to guarantee chip deliveries, the Japan Automobile Manufacturers Association said on Thursday.

The chips produced by the affected manufacturer are critical components used in electronic control units, and this situation could cause a serious impact on the global production of member companies, the JAMA said in a statement.

German auto giant Volkswagen (OTCPK:VWAGY [https://seekingalpha.com/symbol/VWAGY]) (OTCPK:VWAPY [https://seekingalpha.com/symbol/VWAPY]) has already warned [https://seekingalpha.com/news/4506931-volkswagen-warns-of-potential-production-stoppages-amid-nexperia-chip-disruption] of production stoppages amid China’s export restrictions on semiconductors made by Nexperia.

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