Semiconductor manufacturer Nexperia has reportedly sent a letter to its customers stating that delivery times and quality from its factories in China will be affected.

Reuters obtained the letter from Nexperia to its customers, which mentions that the company is further clarifying the scope and impact of the actions taken by China against Nexperia’s factories and subcontractors. The letter states that while China has indicated it would consider exemptions to ensure the delivery schedule for some chips, uncertainty remains regarding delivery times and quality.

A spokesperson for the Dutch Ministry of Economic Affairs stated that the two countries are still in discussions, seeking a constructive solution beneficial to both Nexperia and the economies of both countries.

The European Commission welcomed the discussions between China and European companies regarding the resumption of some chip supplies, believing it buys time and space to find a lasting solution and avoid the worst-case scenario.