The European Commission is proposing a temporary sanctions exemption for Chinese power-semiconductor manufacturer Yangzhou Yangjie Electronic Technology Co.
Major European automakers warned that current restrictions would exhaust chip inventories within weeks. These shortages threaten to force widespread production shutdowns across the continent.
Yangzhou Yangjie produces critical automotive power-management chips and MOSFETs. The EU recently sanctioned the firm in its 20th package for allegedly supplying dual-use technology to Russia.
This potential carve-out underscores the vulnerability of global supply chains to trade restrictions. It further highlights the West’s ongoing reliance on Chinese legacy silicon.