China’s Wingtech, owner of Nexperia, expects wider loss amid row over Dutch chipmaker

Wingtech Technology, the Chinese owner of chipmaker Nexperia, is expected to post a loss of between 9 billion yuan (US$1.3 billion) and 13.5 billion yuan in 2025, owing to the Dutch government’s takeover of the semiconductor firm, the Shanghai-listed company said in a statement on Friday.Wingtech said that its authority over the chipmaker continues to be “temporarily restricted” since the October 7 ruling of the Dutch Enterprise Chamber, a special division of the Amsterdam Court of Appeal, remained in place, despite the government’s suspension of its September 30 order to seize control of Nexperia.On November 19, the Dutch government suspended its invocation of the Goods Availability Act, a Cold War-era law used to seize control of Nexperia’s European operations, “as a show of goodwill”. Beijing had said the move was a “first step in the right direction”.“During the reporting period, the company expects to recognise a significant amount of investment losses and asset impairment losses, which will have a substantial impact on the company’s performance for the 2025 financial year,” Wingtech said in the statement.The projected loss would exceed the firm’s 2.83 billion yuan loss in 2024.That would also mark a reversal of the trend in the first three quarters of 2025, when Wingtech reported a 265 per cent year-on-year increase in net profit to 1.51 billion yuan, according to its third-quarter financial results published at the end of October.Wingtech had warned in the third-quarter results that the Dutch authorities’ actions brought uncertainty on “whether the semiconductor business can maintain the strong momentum seen in the first three quarters”.