Logos of Nexperia and its parent company Wingtech Technology File photo: VCG

Chinese semiconductor firm Wingtech Technology on Friday reported a net loss of 406 million yuan ($60.2 million) for the first half of 2026, swinging from a profit of 474 million yuan a year earlier, after its subsidiary Nexperia's Dutch entity stopped supplying wafers to its China operations, affecting production, the company said in its financial results.

The company said that it has taken various measures to safeguard its legitimate rights and interests, and it could initiate further claims proceedings under the Bilateral Investment Treaty (BIT) to comprehensively recover related losses.

Revenue plunged 94.02 percent year-on-year to 1.514 billion yuan in the six months ended June 30, according to the company's half-year report.

Wingtech listed the ongoing Nexperia dispute as a matter that has already had, and is expected to continue having a major impact on its operations. Shanghai-listed Wingtech is the parent company of Nexperia.

The root cause of the problem dated back to September 30, 2025, when the Dutch Ministry of Economic Affairs and Climate Policy issued a ministerial order and the Amsterdam Enterprise Chamber of the Court of Appeal issued a ruling that restricted Wingtech's control over Nexperia's overseas entities.

In Friday's report, Wingtech said that although the ministerial order has since been suspended, the court ruling remains in force. As a result, Wingtech's control over the relevant overseas Nexperia entity is currently limited.

"The overseas entity is no longer following instructions from the listed company and has suspended wafer supplies to Nexperia's China-based operations, disrupting the continuity of manufacturing," Wingtech said. Meanwhile, the current restrictions have created uncertainty over Wingtech's access to overseas wafer lines, R&D resources and sales channels.

Wingtech has taken multiple steps to protect its interests and stabilize supply, and will continue to pursue multi-level legal action in the Netherlands to defend its lawful shareholder rights, and has filed a lawsuit at the Intermediate People's Court in Dongguan, South China's Guangdong Province, where Nexperia China is headquartered, seeking compensation for related losses, according to the company.

Wingtech also said that further claims proceedings may be initiated under the BIT to comprehensively recover related losses.

Nexperia, acquired by Wingtech in 2019, was previously run as a classic IDM (integrated device manufacturer) with front-end wafer fabrication mainly in Germany and the UK and back-end assembly and testing in Dongguan, Malaysia and the Philippines.

Given the current restricted wafer supply from Nexperia, Wingtech is accelerating the build-out of a complete domestic supply chain. It is leveraging its own packaging and testing capacity in China and cooperating with local wafer foundries to maintain deliveries to Chinese and global customers, said the half-year report.

The company has also been migrating products to 12-inch wafer platforms. The wafer supply gap for discrete transistors is expected to narrow gradually from the second half of 2026.

Global Times