In this photo illustration, the logo of semiconductor manufacturer Nexperia is displayed on the screen.
Video Visual China Group | Getty Images
Shares in Europe’s biggest automakers rose on Monday as concerns about the industry’s semiconductor shortage appeared to be receding.
China announced on Saturday that it would consider some exemptions for exports of Nexperia chips. After the Dutch government took control of NExperia, a subsidiary of the Chinese company Wingtech, the Dutch government blocked the flow of NExperia semiconductors out of the country.
Automotive groups have sounded the alarm about a worsening chip shortage following the spat between the Netherlands and China.
french renaultGerman mercedes benz group and Jeep manufacturer’s Milan-listed stock Stellantis Both were up about 3% on Monday morning.
auto parts suppliers Valeo and Aumovio By around 11:30 a.m. London time (6:30 a.m. ET), they had advanced 3% and 1.6%, respectively.
german volkswagen, porsche and BMW was also trading up more than 1.3%.
How Volkswagen’s stock price compares to other major European automakers over the past three months.
Analysts at Barclays said the weekend’s developments looked “quite positive” for the auto sector and any fears of significant disruption looked likely to be avoided.
“While the Nexperia issue has not been fully resolved, and while we await further details on ongoing negotiations between the Dutch and Chinese governments to determine the future direction of Nexperia, we believe any potential near-term production headwinds have been resolved,” Dan Levy, senior auto analyst at Barclays, said in a research note published on Monday.
The situation surrounding NExperia began in September, when the Dutch government took control of the company in a move considered highly unusual after the United States raised security concerns.
In making the decision, the Dutch government cited concerns that the company’s technology, which specializes in the mass production of chips used in automobiles, consumer electronics and other industries, would “become unavailable in an emergency.”
China responded by blocking the export of the company’s finished products.
German automakers are thought to be particularly susceptible to Nexperia-related disruptions because they rely heavily on large domestic suppliers known as “Tier 1” and local production facilities and companies like Nexperia, even though much of their manufacturing has moved to China.
Japan’s Honda last week became the first automaker to cut production due to the problem.
