📊Executive Summary

The EU's recent sanctions against Yangzhou Yangjie Electronic Technology Co., Ltd. pose significant risks to the semiconductor supply chain, particularly for automotive manufacturers in Europe. Yangjie, a key supplier of semiconductors, wafers, and discrete electronic devices, has been accused of supplying components to Russia, leading to a potential asset freeze and prohibiting EU companies from purchasing from them. This situation is exacerbated by the fact that Yangjie has largely replaced Nexperia in the European auto supply chain. Furthermore, its subsidiary, Micro Commercial Components (MCC), may also face similar sanctions, impacting procurement for various OEMs that rely on their components. The proposed nine-month reprieve on sanctions highlights the critical role Yangjie plays in the supply chain, but uncertainty remains regarding future availability of components....