EU forced to exempt banned Chinese chipmaker after auto industry warns of supply crisis — European car factories warn of imminent supply chain collapse

Source: Tom’s Hardware

The European Commission is preparing to propose a temporary exemption for a Chinese semiconductor manufacturer—likely, though unconfirmed, Yangzhou Yangjie Electronic Technology—from the EU’s 20th Russia sanctions package, as reported by Bloomberg. European automakers warned that without the derogation, chip inventories would be exhausted within weeks, forcing production stoppages across the continent — see the related coverage on Tom’s Hardware. The proposal could be announced as early as this week, but it would still require approval from all 27 EU member states.

Background

Yangjie was one of several third‑country entities added to the sanctions list when the EU adopted the package last month. According to EU sanctions filings, the Yangzhou‑based company allegedly shipped over 200 consignments of dual‑use technology to Russia since the invasion of Ukraine, with its components found in Russian drones and ammunition.