EU sanctions disrupt chip supply, German automotive industry faces difficulties

Moscow (ANTARA) – Germany’s automotive industry is facing chip shortages after the European Union added Chinese company Yangzhou Yangjie Electronic Technology Co. (Yangjie) to the sanctions package against Russia, Handelsblatt reported on Tuesday, 19 May.

In April, the EU expanded the list by six Chinese firms, including Yangjie, as part of its 20th sanctions package against Russia.

Dominik Zillner, CEO of Components at Service, described Yangjie’s loss as a serious blow for the automotive industry. He said Yangjie had previously helped plug shortages that emerged in autumn 2025 following a crisis affecting the Dutch semiconductor maker Nexperia, which has yet to fully recover.

Noureddine Seddiqi, CEO of Sand & Silicon, based in Frankfurt, said clients were worried about the sanctions on Yangjie. He noted that several companies urgently needed assistance to source alternatives, but this was difficult because other chipmakers competing with Yangjie were also operating at full capacity.

“In negotiations, we’ve heard that Nexperia’s stock for many clients is expected to last only until roughly July–October. Therefore, many companies are hoping the situation will improve during that period,” Seddiqi said.

On 23 April, the EU announced its 20th sanctions package against Russia by expanding restrictions in the energy sector, including production, processing, and transportation of oil.

The EU has also said it is preparing the 21st sanctions package.

Russia has repeatedly asserted it will be able to withstand the pressure of Western countries that has intensified in recent years.