[News] Nexperia China Arm Defies HQ; Parent Wingtech Flags Cash-Flow Strain Despite 280% Q3 Profit Jump

The Dutch government seized control of Nexperia and dismissed its Chinese CEO, sending shockwaves through the global semiconductor industry. According to Tom’s Hardware, Wingtech stated in its earnings filing that if it fails to regain operational control of its European subsidiary, Nexperia could face temporary pressure on revenue, profit, and cash flow due to governance issues, even as the company reported a 280% surge in quarterly net profit.

As Tom’s Hardware notes, although Wingtech’s earnings release did not explicitly mention the Dutch government, the reference was clear. Nexperia is one of the world’s leading suppliers of commodity components such as diodes, MOSFETs, and small-signal logic used in voltage regulation modules and ESD protection. Should geopolitical tensions disrupt operations or investment plans, Nexperia could face longer lead times and higher input costs.

The turmoil at Nexperia is already reverberating through the global automotive industry. According to South China Morning Post, the Japan Automobile Manufacturers Association revealed that Nexperia had informed Japanese car parts makers it may no longer be able to guarantee chip deliveries.

Against this backdrop, Volkswagen Group CEO Oliver Blume — whose company owns Audi and Porsche — said that Volkswagen’s short-term chip supply remains stable for now, but warned that the situation is precarious and requires a swift political solution to prevent future disruptions, as noted by Reuters, citing Bild am Sonntag.

Nexperia China Resumes Domestic Shipments in Yuan

Despite the tensions, Nexperia’s headquarters remained confident about the company’s operations in China. As noted by South China Morning Post, a representative from the Dutch head office said the firm was not “stepping away from its Chinese activities.”

Nexperia China has instructed its employees to follow directives from local management and disregard orders from the Dutch headquarters, as reported by South China Morning Post, citing sources. In an open challenge to the head office in Nijmegen, the Netherlands, the company declared itself an “independent” Chinese entity and stressed that employee salaries were paid by the local unit rather than the headquarters.

In addition, Nexperia China has resumed semiconductor shipments to domestic distributors, according to sources cited by Reuters. However, the restart is confined to local transactions, with all distributor payments now required to be settled in Chinese yuan — a move seen as an effort to stabilize supply within China and reinforce operational independence from its Dutch parent.

Meanwhile, as Reuters reports, Nexperia is also exploring alternative packaging partners outside China, with its dispute with the Chinese subsidiary showing no signs of being resolved anytime soon.

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(Photo credit: Nexperia)