Yangjie most notably makes power semiconductors, including rectifiers, MOSFETs, IGBTs, and SiC devices. They’re far from leading-edge processors, but they do play a foundational role in regulating current and managing power in automotive electronics. Dominik Zillner, CEO of distributor Components at Service, told German newspaper Handelsblatt that losing Yangjie as a supplier was a serious blow to an industry that had relied on the company to fill the gap left by Nexperia.
Noureddine Seddiqi, CEO of Frankfurt-based chip distributor Sand & Silicon, also told Handelsblatt that clients' remaining Nexperia chip stocks are expected to last only until “July or October.” Competing suppliers are operating at full capacity, making quick substitution difficult, and several companies are seeking urgent alternative sources.
China partially eased its Nexperia export controls in November, granting exemptions for civilian-use chips after a meeting between Presidents Xi Jinping and Donald Trump in Busan, South Korea. But Nexperia's supply chain remains fragile, and around 70% of Nexperia chips manufactured in Europe are sent to China for backend assembly before being re-exported, a dependency that any future geopolitical friction could disrupt again.
The proposed derogation would effectively unwind part of the EU's own sanctions package less than a month after adoption. The 20th package was the largest round of Russia-related listings in two years, designating 117 individuals and entities across energy, finance, and military-industrial sectors. China's Ministry of Commerce condemned the inclusion of Chinese firms and responded by placing several European defense companies on its own export control list.
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Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/eu-moves-to-exempt-sanctioned-chinese-chipmaker-after-auto-industry-warns-of-weeks-long-supply-crisis#main
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