EU Exempts Banned Chinese Chipmaker Yangjie to Prevent Auto Supply Collapse

The European Commission is preparing to propose a temporary exemption for a Chinese semiconductor manufacturer from the EU's 20th Russia sanctions package. The company likely to receive this derogation is Yangzhou Yangjie Electronic Technology, though the identity remains unconfirmed. This regulatory move aims to prevent an immediate supply chain collapse in the European automotive sector.

European automakers warn chip inventories will run out within weeks without regulatory relief.

Yangjie manufactures power semiconductors including rectifiers, MOSFETs, IGBTs, and silicon carbide devices. The company has reportedly shipped over 200 consignments of dual-use technology to Russia since the invasion of Ukraine. Components from Yangjie have been identified in Russian drones and ammunition systems.

European automakers warn that chip inventories would be exhausted within weeks without this exemption. Dominik Zillner, CEO of distributor Components at Service, stated that losing Yangjie as a supplier represents a serious blow to the industry. The company previously filled supply gaps left by Nexperia after its own crisis.

Noureddine Seddiqi, CEO of Frankfurt-based chip distributor Sand & Silicon, noted that remaining stocks from competing supplier Nexperia will only last until July or October. Other potential suppliers are already operating at full capacity. The EU proposal could be announced as early as the week following the May 21 report.

The specific Chinese semiconductor manufacturer remains unconfirmed by official channels. Exact details regarding the timeline and scope of the proposed exemption have not been finalized.