EU may exempt sanctioned Chinese chipmaker to fill Nexperia gap

The European Commission is preparing a temporary exemption for Chinese chipmaker Yangzhou Yangjie Electronic Technology even though the company is on the EU sanctions list for supplying Russia. European automakers warned that without an exemption, chip stocks would run out within weeks, paralyzing production lines. The exemption would require approval from all 27 EU member states, creating potential delays. Yangjie was sanctioned after the EU found it shipped more than 200 shipments of dual-use technology to Russia, with evidence that its components appeared in Russian drones and ammunition. The company has become important to European automotive power semiconductor supply after disruptions tied to the Nexperia crisis and China’s export controls.

"The European Commission plans to propose a temporary exemption for the Chinese chipmaker Yangzhou Yangjie Electronic Technology, despite the company being on the EU sanctions list for supplying Russia. European automakers warned that their stocks would otherwise run out within weeks. The proposal requires approval from all 27 EU member states, which could cause further delays. The European Commission is preparing a temporary exemption for Yangjie, Bloomberg reports."

"Yangjie was sanctioned after the EU determined that the company had shipped more than 200 shipments of "dual-use" technology to Russia. This refers to equipment or software that can be used for both commercial and military purposes. The EU also has evidence regarding the latter. Yangjie components have reportedly been found in Russian drones and ammunition."

"The automotive industry is still recovering from the Nexperia crisis. After the Dutch government took control of Nexperia last October and China imposed export controls, production lines at Honda, Volkswagen, and Bosch temporarily ground to a halt. Companies turned to Yangjie as an alternative supplier of power semiconductors. That turned out to be a new vulnerability."

"Yangjie manufactures various fundamental electronic components: rectifiers, MOSFETs, IGBTs, and SiC components. So, no advanced processors, but rather the building blocks for power control in automotive electronics. Dominik Zillner, CEO of distributor Components at Service, called the loss of Yangjie as a supplier a severe blow to an industry already reeling f"

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