Chinese government to grant chip import requests for Brazilian automakers

Brazilian automakers may soon receive special authorization from the Chinese government to import chips and prevent a domestic supply shortage that has alarmed the industry. The diplomatic concession was confirmed on Saturday (1st) by China’s ambassador to Brazil, Zhu Qingqiao, to the National Association of Motor Vehicle Manufacturers (Anfavea), following negotiations led by the Brazilian government.

According to the announcement, Brazilian companies facing difficulties importing semiconductors will be able to request an exemption from China’s export restrictions directly through the Chinese Embassy in Brasília or the Chinese Ministry of Commerce, which will assess each application individually before granting a special export license.

The move comes amid escalating global tensions in the semiconductor supply chain. The recent crisis was triggered by a decision from the Dutch government to intervene in Nexperia, one of the world’s leading automotive chip producers, responsible for about 40% of the global market for key vehicle components such as diodes, transistors, and voltage regulators.

The Netherlands’ decision, justified on national security grounds, drew an immediate response from Beijing, which imposed restrictions on exports of Nexperia products made or processed in China. The ban disrupted global semiconductor supplies, raising alarms in countries heavily dependent on such components — including Brazil.

Brazil’s auto industry heavily reliant on imported chips
In Brazil’s case, dependence is nearly total: the country imports virtually all chips used by its automotive industry. According to Anfavea, each modern vehicle assembled in Brazil contains between 1,000 and 3,000 semiconductors, used in systems ranging from electronic injection and brake control to safety and entertainment modules.

As a result, any supply disruption could halt production lines within weeks. Anfavea estimates that without chip replenishment, automakers could be forced to suspend production in as little as three weeks.

The Brazilian automotive sector, which employs around 1.3 million people and drives supply chains in steel, plastics, and electronics, is closely monitoring the situation. The dialogue with China is seen as a strategic safeguard to ensure continuity of supply and avoid ripple effects on jobs and the wider economy.

Vice President Geraldo Alckmin described China’s gesture as “a positive step,” while noting that it remains to be seen how the commitment will materialize in practice. Automakers with stronger integration into Chinese supply chains, such as BYD and GWM, are expected to be less affected, whereas those relying on European or U.S. suppliers remain more vulnerable.

Source: Gazeta do Povo

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