JAKARTA - The German automotive industry is facing chip supply difficulties after the European Union (EU) included the Chinese company Yangzhou Yangjie Electronic Technology Co. (Yangjie) in a package of sanctions against Russia, daily Handelsblatt reported, Tuesday (19/5).
In April, the EU added six Chinese companies, including chipmaker Yangjie, to a sanctions list as part of a 20th round of sanctions against Russia.
Components at Service CEO Dominik Zillner said the loss of Yangjie as a supplier was a serious blow to the automotive industry.
He explained that Yangjie previously helped plug the supply shortage that emerged in the fall of 2025 due to the crisis that hit Dutch semiconductor manufacturer Nexperia, which has not yet fully recovered.
The CEO of Frankfurt-based Sand & Silicon, Noureddine Seddiqi, said his clients were concerned about sanctions against Yangjie.
Quoted by ANTARA from Sputnik, Tuesday, May 19, Seddiqi revealed that a number of companies needed urgent assistance to find alternative supplies. However, this is difficult to do because other manufacturers competing with Yangjie are also operating at full capacity.
"In negotiations, we heard that the stock of Nexperia chips owned by many clients is estimated to be sufficient only until July-October. Therefore, many companies hope that the situation will improve during this period," said Seddiqi.
On April 23, the EU announced its 20th package of sanctions against Russia by expanding restrictions in the energy sector, including oil production, processing, and transportation.
The EU also said it was preparing a 21st package of sanctions.
Russia has repeatedly stressed that it will be able to overcome the pressure of sanctions that have been increased by the West in recent years.
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