Khaberni - Chinese company Wingtech Technology warned that the Dutch government's takeover of its subsidiary chipmaker "Nexperia" could negatively affect its profits if it cannot regain control by the end of the year.
The Shanghai-listed electronics company said in its latest quarterly earnings report released on Friday, "If the company cannot regain control of Nexperia before the end of 2025, it may face temporary downward pressure on revenue, profits, and cash flows."
Wingtech, headquartered in Jiashan, announced earnings that exceeded expectations in the third quarter, with semiconductor business revenues up 12.2% year-on-year, driven by strong demand across all product lines, according to a report seen by "Al Arabiya Business" from Bloomberg.
However, Wingtech added that it is difficult to determine the potential impact of the ongoing dispute with the Dutch authorities, and whether its chipmaking sector can sustain growth remains uncertain.
Nexperia, a major supplier whose components are used in vehicles manufactured by companies like Volkswagen, is the latest company caught in the escalating global trade dispute ahead of crucial talks between China and the United States.
The unprecedented move last month by the Dutch government to take over "Nexperia" followed a warning from the United States that the chipmaker would need to replace its Chinese CEO to stay off the sanctions list.
Wingtech was placed on the United States' Entity List in 2024, with concerns that "Nexperia" would not act independently from its parent company.
China's Trade Minister warned days ago that the Dutch state's move "seriously affected" the stability of the global supply chain, while the Dutch government said it would remain in contact with Chinese authorities to work "toward a constructive solution."
