By Dominic Chopping
Shares in European automakers rose Monday on optimism that a supply shortage of semiconductors might soon be resolved.
China's Commerce Ministry said over the weekend that it will loosen its export restrictions on chips made by Netherlands-based Nexperia, hinting at a de-escalation of a weeks-long dispute triggered by U.S.-China trade tensions.
In late September, the Dutch government wrested control of Nexperia from its Chinese owner Wingtech Technology, citing the need to preserve "technological knowledge and capabilities" necessary for Europe's economic security. That move came after the U.S. extended export control restrictions to include companies that are at least 50% owned by entities on the U.S. trade blacklist, which includes Wingtech.
China responded by prohibiting Nexperia chip exports from China, where most of its products are processed.
The situation has raised concerns among global automakers as they race to find alternative suppliers, with a trade group representing the auto sector in the European Union last week warning of imminent assembly line stoppages, with some of its members already experiencing a halt to part supplies.
However, following talks between President Trump and Chinese leader Xi Jinping, China announced exports of the chips will soon resume.
"China will take appropriate measures to ensure the resumption of trade from Nexperia's facilities in China, allowing production of critical legacy chips to flow to the rest of the world," according to a fact sheet published by the U.S. administration following the talks.
Europe's biggest manufacturers, including Volkswagen, Mercedes-Benz and BMW, recently said they had enough supply in the short-term but were working to avoid production disruptions. Volkswagen and Audi on Friday said their full-year financial guidance was dependant on an adequate supply of semiconductors.
Citi analysts said they expect the news to boost shares of EU auto-part suppliers and original equipment manufacturers this week.
Shares in Volkswagen, Mercedes-Benz, Volvo Car and Renault all rose by at least 3% in early European trade Monday, while Porsche and Stellantis shares gained around 2.5% and BMW added 1.7%.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
November 03, 2025 05:00 ET (10:00 GMT)
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