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But the decision quickly sparked backlash across the continent The processors are widely used in products ranging from computing to consumer applications. Automakers, including volkswagen, warned of production risks and halted assembly lines as supplies of nexperia’s chips — small, inexpensive components used in nearly every modern vehicle — began to dry up

Now the dutch government appears ready to reverse course. A dispute between the netherlands and china over ownership and control of nexperia has led to a shortage of chips from the company which has hit automotive supply chains around the world, while disrupting output and leading some customers to furlough staff The dutch government is ready to relinquish its control over nexperia if beijing allows its china factory to resume exports.

The netherlands will drop control over nexperia if china resumes chip exports and settles internal financial issues.

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