China’s Wingtech Technology, the parent company of Dutch chipmaker Nexperia (a key automotive chip supplier), has warned that its financial performance could suffer significantly if it fails to regain control of its seized subsidiary by the end of 2025.
In its quarterly earnings report released on Friday (October 24), the Shanghai-listed electronics firm said, “If control of Nexperia cannot be restored before the end of 2025, the company may face temporary downward pressure on revenue, profit, and cash flow,” according to Bloomberg.
The warning highlights rising tensions surrounding the global semiconductor industry. While Wingtech reported better-than-expected third-quarter earnings, with semiconductor revenue up 12.2% year-on-year, it cautioned that the long-term sustainability of its chipmaking business is now uncertain amid the ongoing dispute.
The standoff began last month when the Dutch government seized control of Nexperia, a major supplier of essential automotive chips used by companies such as Volkswagen AG.
The move came after mounting U.S. pressure following Wingtech’s inclusion on the U.S. Entity List in 2024. Dutch authorities justified the action by citing concerns that Nexperia was not operating independently of its Chinese parent company, which also led to the removal of its Chinese CEO.
The dispute has fueled fresh concerns over global supply chain stability ahead of the upcoming U.S.-China trade talks. Earlier this week, China’s Commerce Minister said the Dutch action had ‘seriously affected’ the stability of the global supply chain.
The Dutch government responded by stating it remains in contact with Chinese authorities and is working ‘toward a constructive solution.’
Wingtech’s warning adds to growing signs of strain in the semiconductor sector as geopolitical tensions continue to reshape the industry’s global landscape.
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