How EU Sanctions Are Jeopardizing Two Key Semiconductor Suppliers

The EU Sanctions Yangzhou Yangjie Electronic 

On April 23, 2026, the EU released additions to its sanctions package against Russia under Regulation No. 269/2014. One of the companies that appeared on the new sanctions list was Yangzhou Yangjie Electronic Technology Co., Ltd. A Chinese manufacturer, Yangzhou Yangjie designs and produces semiconductors, wafers, and discrete electronic devices. The EU has accused Yangjie of supplying parts to Russia in violation of EU regulations.

As a result of these new sanctions, Yangjie is at risk of an EU asset freeze. This means that EU persons and entities are prohibited from making funds or economic resources available directly or indirectly to Yangjie, or for the benefit of the company. This freeze effectively prohibits EU companies from purchasing components from Yangzhou Yangjie or conducting any other type of business with them, including foreign companies that utilize Yangzhou Yangjie components in their products sold in the EU.  

EU Temporarily Suspends Sanctions on Yangzhou Yangjie 

Less than a month later, on May 22, 2026, the EU Commission proposed a nine-month reprieve on the sanctions it had just imposed on Yangzhou Yangjie in April. While this proposed suspension must be approved by all member states to become law, the EU’s backtracking underscores just how integral Yangjie has become as a key semiconductor supplier to the automotive supply chain in Europe. 

Indeed, according to many automakers, Yangzhou Yangjie has largely replaced Nexperia in the European auto supply chain, following the ownership crisis that the Dutch chip manufacturer suffered late last year. Now Yangjie finds itself under similar regulatory duress, with the possibility that it will no longer be able to supply parts to EU automakers by early 2027. 

California Chipmaker Micro Commercial Components Also in EU Crosshairs 

The implications of these EU sanctions extend beyond Yangzhou Yangjie. Z2 has identified Micro Commercial Components (MCC) as a wholly owned subsidiary of Yangzhou Yangjie. This means that, as per EU sanctions law, the same restrictions that apply to Yangzhou Yangjie may also apply to MCC. Consequently, whenever the EU sanctions enter into force against Yangzhou Yangjie, they’ll also likely be imposed on MCC, too (if the EU approves the proposed nine-month suspension, then sanctions will enter into force in February 2027). When that happens, businesses that operate in the EU may no longer be able to purchase parts or products from the U.S. manufacturer. 

Given that MCC is an American company headquartered in California, this is a relatively unusual set of circumstances. More importantly, it’s something that many original equipment manufacturers (OEMs) and other businesses that source from MCC may not be aware of. 

MCC is a large manufacturer of electronic components, including diodes, transient voltage suppressors, and rectifiers. Because of the company’s indirect (non-listed) connection to Yangzhou Yangjie, MCC represents a significant blind spot for many electronics manufacturers who source from the supplier and may not be aware that they’ve fallen into the scope of the EU’s Russia  sanctions.  

Yangzhou Yangjie Components Subject to EU Sanctions

Yangzhou Yangjie manufactures too many electronic components to list in full here. Instead, we’ve zeroed in on the commodity categories the supplier produces the largest number of parts in. Should the temporary exemption go into effect, then these parts will become subject to EU sanctions in late February 2027.

Micro Commercial Components Subject to EU Sanctions

Our parts database indicates that MCC manufactures many of the same commodities as its parent company, Yangzhou Yangjie. But the California-based chipmaker also produces a relatively high number of linear voltage regulators, NTS thermistors, and insulated-gate bipolar transistors (IGBTs).

Other Chipmakers Are Also Vulnerable to EU Sanctions

The EU’s impending sanctions on Yangzhou Yangjie could also extend beyond Micro Commercial Components. Based on an internal analysis by Z2, a number of well-known chip manufacturers use production sites owned and operated by Yangzhou Yangjie to manufacture their parts. Based on EU law, that could put those businesses inside the scope of these sanctions. 

That’s because EU businesses and persons are prohibited from doing business with Yangzhou Yangjie and/or making funds or economic resources available to the Chinese chipmaker. Manufacturers using the supplier’s production sites fall within that definition, making it reasonably likely that EU organizations will be prohibited from sourcing those parts.

Identifying Crosses for Yangzhou Yangjie and Micro Commercial Components

Using Z2’s Part Risk Manager and its cross-reference tool, businesses can identify the best available crosses for the Yangzhou Yangjie and MCC components at risk of impending EU sanctions—as well as parts made by other manufacturers using Yangjie’s facilities. 

Z2’s cross-reference tool shows users the best available alternate components for high-risk parts based on form, fit, and function. These crosses are classified into three different tiers—A, B, and C—based on the quality of the cross’s match to the original part. By utilizing Z2Data’s component database, businesses can search for crosses to over one billion components. 

In addition, companies can apply advanced filters like country of origin (COO) and lifecycle projection to refine the search for crosses based on the most desired characteristics.

How Can Companies Identify and Address Exposure to Yangjie or MCC?  

Companies can start mitigating these sanctions risks by identifying the manufacturers of all the components on their BOMs, including parts produced by Yangzhou Yangjie and Micro Commercial Components. Next, businesses will need to understand which products are—or could potentially be—sold within the EU. Finally, they’ll need to search for alternate components for any Yangjie or MCC parts found in their BOMs. If the nine-month reprieve holds, businesses operating in the EU will have until early 2027 to carry out these steps and completely remove Yangjie and MCC components from their manufacturing processes. 

How Z2 Can Help

Z2 can help companies grappling with these EU sanctions risks in three key ways.

• Z2’s Supply Chain Risk tool can help businesses identify potential exposures to Yangzhou Yangjie and Micro Commercial Components in their supply chains by utilizing sub-tier intelligence and supply chain relationship data. 

• Supply Chain Risk can aid customers in comprehensively screening potential alternative suppliers for financial, geopolitical, and regulatory risks, among other factors.

• Z2’s Part Risk Manager and its cross-reference tool (as discussed earlier).

Contact us for a free trial and a full demonstration of these capabilities.