German automotive parts supplier Aumovio has announced that shipments of Nexperia chips from China have resumed following the easing of an export ban that threatened global automotive production.“We have resumed chip exports from China,” Aumovio CEO Philipp von Hirschheydt stated on Friday during the company’s third-quarter earnings call. He also added that the company has received an export control exemption.Last month, Beijing banned the export of finished Nexperia chips, 80% of which are processed in China. This action was seen as retaliation after the Dutch government took control of the Netherlands-based company due to concerns over governance related to its Chinese parent company. Nexperia chips are widely used in the automotive manufacturing sector.Executives from Volkswagen, Honda, and Ford had warned that the supply chain would face severe disruptions and called on governments in Europe, China, and the United States to address the issue.Dutch Minister of Economic Affairs Vincent Karremans stated on Thursday that the Netherlands “welcomes China’s announcement to allow the resumption of supplies from Nexperia’s factories in China.”“Given the constructive talks with Chinese authorities, the Netherlands believes that chips shipped from China to Europe and other parts of the world will reach Nexperia’s customers in the coming days,” he added.This crisis was triggered by the Dutch government’s takeover of Nexperia, which is headquartered in the Netherlands but owned by China’s Wingtech Technology. The Dutch government also forced the group’s Chinese CEO to resign, citing that his actions threatened Europe’s chip supply.Wingtech remains the actual beneficial owner of the enterprise and has contested this action.Despite the resumption of exports, von Hirschheydt indicated that there would still be some impact. “There will definitely be some chaos in the future, as a disruption in the global automotive industry supply chain lasting more than four weeks will significantly impact operational efficiency,” he stated.Companies remain concerned about the procurement process. Beijing has requested companies purchasing rare earth materials used for chips to provide information regarding their usage, customers, and production processes.Japanese Automakers on High AlertJapanese automakers are struggling to cope with China’s new export restrictions on chips and components, with Honda and Nissan already forced to cut production, while other manufacturers are seeking alternatives.On Friday, Honda forecasted that its operating profit for the fiscal year ending March 2026 would decrease by 150 billion yen (approximately $1 billion) due to the shortage of Nexperia chips, lowering its expected profit from 700 billion yen to 550 billion yen. Additionally, the company has revised its North American sales forecast down to 1.57 million units, a 7% year-on-year decline, equivalent to 110,000 units.The latest setback in the industry has raised concerns that this could be the biggest blow to Japanese automakers since the semiconductor shortage following the pandemic in 2022. This setback comes after a brief respite following successful tariff negotiations with the United States.The recent takeover of the Chinese chip manufacturer Nexperia by the Dutch government has triggered China’s latest export control measures. The Dutch government’s action was motivated by concerns that critical technology could be transferred to its Chinese parent company. In response, China has begun banning Nexperia’s Chinese subsidiaries and their subcontractors from exporting certain finished parts and subcomponents produced in China.Bloomberg reported on Friday that, according to informed sources, the Dutch government is prepared to suspend the ministerial order if Beijing allows the resumption of chip exports, which would ease the dispute affecting global automakers.The Nikkei reported last week that Honda had halted car production in Mexico due to parts shortages related to the Nexperia dispute.Honda Vice President Kazuya Hihara acknowledged the production halt during Friday’s earnings call. “We will continue to adjust and respond as quickly as possible… The affected parts all come from the same supplier,” he stated, but did not disclose the supplier’s name as Nexperia.Nexperia’s chips are widely used in the automotive sector, covering everything from electronic control unit signal processing to the opening and closing of windows. The proliferation of electric vehicles and the increasing complexity of automotive technology have made semiconductors play an increasingly important role in automotive manufacturing.Nissan has been forced to scale back production at several of its plants in Japan, with planned output for next week reduced by several hundred units.Chief Financial Officer Jeremy Papen mentioned “supplier risk” during Thursday’s earnings call and set aside 25 billion yen as a “placeholder” in the fiscal outlook for the year ending March 2026.Masakatsu Katayama, President of the Japan Automobile Manufacturers Association, warned last month: “This situation could have a significant impact on the global production of our member companies. We hope that the relevant countries can find practical solutions as soon as possible.”Other automakers are scrambling to respond, with Mitsubishi Motors CEO Takao Kato stating on Wednesday that production after mid-November may be affected. “We are working hard to find alternatives and updating information daily,” he said.The company has lowered its operating profit forecast for the fiscal year ending March next year to 70 billion yen. Kato added, “In our forecast, we believe that the impact of Nexperia chips may pose a potential risk. However, the current exchange rate is slightly more favorable than we had predicted. We believe this can mitigate the impact to some extent.”Suzuki Motor Vice President Naomi Ishii stated on Thursday that the company is “continuously gathering information and taking measures from morning to night… to prevent any impact on production.” She stated, “We are looking for alternatives, including sourcing from the open market. I believe our current situation is not urgent. However, a comprehensive review takes time due to the numerous parts involved.”Jeffrey Gaiton, Chief Financial Officer of Mazda, stated during a press conference on Friday: “Currently, our production has not been affected.” The company plans to seek possible alternatives as needed.Japan’s largest automaker, Toyota Motor Corporation, is also closely monitoring the situation. The company’s target for global sales this fiscal year is a record 10.5 million units.Toyota Chief Financial Officer Kenji Kato stated during the earnings release on Wednesday: “While there has been no direct impact yet, we recognize this as a risk. We are exploring possible alternatives while closely monitoring the situation.”