United Morning Post reported today (November 1): "The White House plans to announce that the factory of NXP Semiconductors in China will resume shipments. This is undoubtedly a strong shot in the arm for global automakers."
Comment: The news that NXP's Chinese factory resumes shipments is a compromise resulting from the collision between geopolitical rivalry and industrial reality. The Netherlands took over the Chinese-controlled NXP, replaced its executives on the grounds of "national security," and China then imposed export controls. If the Chinese factory, which handles 70% of global packaging and testing tasks, were to shut down, it would directly trigger the shutdown of Honda's Mexican factory and cause European automakers' inventory to last only a few weeks. The U.S. eventually gave in, not only due to pressure from American and European automakers but also out of fear of factional division and the stagnation of global economic recovery. China's fundamental production capacity in the supply chain became the key to breaking the deadlock. However, this "shot in the arm" can only temporarily ease the pain — Wenjie Technology still demands the restoration of original control, and the certification for automotive-grade chip replacement requires more than one year. The disturbance caused by geopolitical tensions on the supply chain has not been eradicated by this short-term compromise.
Original: www.toutiao.com/article/1847584009594052/
Statement: This article represents the views of the author.