Bulk Buying, Rush Orders, Quotation Paused? What‘s Happening with Nexperia?

 01 What happened? 

What are the possible reasons behind this incident?

Timeline of Events:

September 30, 2025 (Netherlands Time): The Dutch Ministry of Economic Affairs and Climate Policy issued a ministerial Order to Nexperia. This order mandates that Nexperia, along with all its 30 global entities (including subsidiaries, branches, and offices), must not make any adjustments to their assets, intellectual property, business operations, or personnel. The order is effective for one year.

October 1, 2025: The statutory director and Chief Legal Officer of Nexperia Holding and Nexperia B.V. (the Dutch registered entity), with the support of two other senior executives, filed an urgent request with the Enterprise Chamber. This request sought the initiation of an investigation into the company and the application of provisional measures.

On the same day, the Enterprise Court immediately enforced several interim measures without a hearing. These measures include: suspending Zhang Xuezheng from his positions as Executive Director of Nexperia Semiconductor Holdings and Non-Executive Director of Nexperia Semiconductor; suspending the effect of Article 3 of Nexperia Semiconductor’s Board Rules (which governs the role and authority of the CEO); and, starting from that day, placing the shares of Nexperia Semiconductor Holdings held by Yucheng Holdings Limited (a wholly-owned subsidiary registered in Hong Kong, China, and the sole shareholder of Nexperia Semiconductor Holdings; hereinafter referred to as "Yucheng Holdings") under the custodianship of an independent third party for management purposes. This measure will remain in effect until the Court issues a ruling on the application for interim measures following the oral hearing on October 6, 2025.

On the afternoon of October 6, the Enterprise Court held a hearing and issued a ruling on the afternoon of October 7, 2025 (Netherlands time). The ruling includes three key points: first, suspending Zhang Xuezheng from his positions as Non-Executive Director of Nexperia Semiconductor Holdings and Executive Director of Nexperia Semiconductor; second, appointing a foreign national designated by the Enterprise Court—who is independent of Nexperia—as Non-Executive Director of both Nexperia Semiconductor Holdings and Nexperia Semiconductor, with the right to a casting vote; the ruling also stipulates that this director has the authority to independently represent Nexperia Semiconductor Holdings and Nexperia Semiconductor; third, placing all shares of Nexperia Semiconductor (minus one share) under the custodianship of a person to be designated and announced later for management purposes. This ruling will remain in effect until the final judgment of the investigation into this case is issued or the case is concluded in other ways.

On October 9th, Wentai Technology issued a morning announcement stating that due to the company having important undisclosed information recently, its stocks and convertible corporate bonds have been suspended from trading starting from the opening of the market on October 9th. The expected suspension period will not exceed 2 trading days.On October 12th, Wentai Technology released an announcement to state the above information.On October 13th, Wentai Technology resumed trading and opened with a 10% drop.

Why was Nexperia suddenly "forcibly taken over"?According to information on the official website of the Dutch government, intervention measures were taken because semiconductor manufacturer Nexperia had serious corporate governance defects. This decision aims to prevent the situation where Nexperia's products (including finished and semi-finished products) cannot be supplied in emergency scenarios. The company's daily production activities can continue as normal.

                                                  Source: Dutch government website

Furthermore, according to reports by the Dutch media outlet NRC, this incident was triggered by the latest export control regulations issued by the U.S. Department of Commerce's Bureau of Industry and Security (BIS) on September 29 (local time). These new regulations stipulate that subsidiaries 50% or more owned by companies listed on the U.S. Entity List will also be subject to U.S. export control restrictions.

Since Wingtech Technology was added to the U.S. Entity List on December 2, 2024, Nexperia, as its wholly-owned subsidiary, is consequently affected by these latest U.S. export control policies.

Previously, Nexperia's acquisition activities have also faced intervention by local governments:

In 2021, Nexperia acquired Newport Wafer Fab (NWF), the UK's largest wafer fab. However, in November 2022, the UK government invoked the National Security and Investment Act citing national security concerns, forcing Nexperia to divest its 86% stake.

In November 2022, energy chip startup Nowi announced it would accept Nexperia's acquisition. In June 2023, the Dutch government introduced the new screening act for foreign company acquisitions (Vifo Act, also known as the "Vifo Wet"). Subsequently, the Dutch government launched a review of Nexperia's acquisition of Nowi under this new national security legislation. In November 2023, Nexperia confirmed that the Dutch government had approved the acquisition of the Dutch semiconductor startup Nowi.

02  What Potential Impacts Might There Be and How Is the Market Reacting?

Wingtech Technology stated that Nexperia's daily operations are currently continuing. However, due to the aforementioned ministerial Order and the Enterprise Chamber's ruling, it will face a temporarily altered/prolonged decision-making chain and reduced flexibility in resource allocation in the short term, which may impact the company's operational efficiency.

The Enterprise Chamber's ruling directly resulted in Yu Cheng Holdings Limited temporarily losing the shareholder rights associated with its remaining 99 shares in Nexperia Holding B.V. (such as governance and voting rights), except for one retained share. This temporarily restricts Wingtech's control over Nexperia, although its economic rights and benefits as a shareholder remain unaffected.

Since acquiring Nexperia, the company rapidly became Wingtech's core asset. After consolidation in 2019, Wingtech's annual revenue surged by approximately 240%, exceeding the ¥40 billion mark.

Wingtech operates three business segments: Product Integration, Semiconductors, and Others. Nexperia essentially constitutes the Semiconductor segment, which reported revenue of $2.06 billion (approximately ¥14.7 billion) in 2024, accounting for about 20% of Wingtech's total revenue. While this percentage may seem modest, the Semiconductor segment's net profit of ¥2.297 billion contributed the vast majority of the company's total net profit. Furthermore, following Wingtech's announcement of a strategic shift at the end of last year to sell its ODM assets and focus on the semiconductor business—as disclosed in its latest announcements—it is clear that Nexperia now represents almost the entirety of Wingtech's core assets.

In 2024, Wingtech Technology achieved total revenue of ¥73.598 billion, representing a year-on-year increase of 20.23%. Within this, the company's semiconductor business (primarily Nexperia) generated revenue of ¥14.715 billion, with a gross margin of 37.47% and a net profit of ¥2.297 billion. The semiconductor business continued to solidify its positive trajectory throughout 2024, demonstrating sequential quarterly revenue growth and maintaining robust profitability.

From 2019 to 2024, the annual revenue of Nexperia was as follows: $1.485 billion (2019), $1.431 billion (2020), $2.137 billion (2021), $2.365 billion (2022), $2.155 billion (2023), and $2.058 billion (2024). The corresponding year-on-year growth rates from 2020 to 2024 were -3.64%, +49.34%, +10.67%, -8.88%, and -4.5%. Notably, both revenue and net profit reached record highs in 2022.

Wingtech Technology has achieved steady revenue growth in recent years. Its total revenue from 2020 to 2024 was ¥51.707 billion, ¥52.729 billion, ¥58.079 billion, ¥61.213 billion, and ¥73.598 billion, respectively.

However, influenced by the broader semiconductor industry downturn and macroeconomic factors starting around 2022, its net profit has continuously declined, dropping significantly to a loss of -¥2.833 billion in 2024.

As of 2024, the Product Integration Business remains its largest revenue contributor (approximately 79% of total revenue). This segment entered a state of operational loss in 2022, which has been a key factor dragging down Wingtech's overall financial performance.

The situation showed some improvement in the first half of 2025. The company reported revenue of ¥25.341 billion, a decrease of 24.56% year-on-year. However, its non-GAAP net profit was ¥334 million, indicating a return to profitability from a loss. The net profit reached ¥469 million, a significant increase of 205% compared to ¥154 million in the same period last year.

According to Wingtech's annual report, Nexperia is a globally leading IDM (Integrated Device Manufacturer) in discrete and power semiconductors and ranks among the top automotive semiconductor companies worldwide. It offers a portfolio of nearly 16,000 different product types.

The company holds leading global market positions across various segments:

Ranked 1st in global shipments for Small-Signal Diodes & Transistors

Ranked 2nd globally for Logic ICs

Ranked 1st globally for ESD Protection Devices

Ranked 1st globally for Small-Signal MOSFETs

Ranked 2nd globally for Automotive-Grade Power MOSFETs

Leveraging its extensive automotive-grade product portfolio and the advantage of being part of a China-based publicly listed company, Nexperia has established deep cooperative relationships with key global enterprises in sectors such as new energy vehicles, power grids, power systems, telecommunications, and data products.

Nexperia has an extensive product portfolio covering diodes, bipolar transistors, ESD protection devices, MOSFETs, GaN FETs, IGBTs, as well as analog and logic ICs. Its components power nearly all electronic designs worldwide—spanning automotive and industrial applications to mobile and consumer applications.

In 2024, 56.1% of Nexperia’s product revenue (USD 1.133 billion) came from distribution channels, 39.7% from OEM customers, and 4.3% from EMS customers.

According to its official website, Nexperia’s agents cover the Americas, Europe/Middle East/Africa (EMEA), and Asia. Its global distributors include Arrow, Avnet, Future, and WPI. Specifically:

In Asia, there are 25 authorized distributors (including Arrow, Avnet, and CEC Port) and 9 IDHs (including Comtech Electronics);

In the Americas, there are 10 distributors (including Arrow and Avnet);

In Europe/Middle East/Africa, there are 13 distributors.

In 2024, Nexperia’s revenue contribution from the Greater China region accounted for approximately 47%, the EMEA region (Europe/Middle East/Africa, excluding the Netherlands) for approximately 22%, and the remaining approximately 9% came from the Americas, with the rest from other regions.

So what is the reaction of the chip spot market now?

Overall, the market has not yet shown a particularly strong reaction. However, several chip distributors stated that starting from last Friday (October 10th), phenomena such as panic buying, rush purchasing, quotation suspension, and shipment suspension have emerged for some of Nexperia’s materials.

One chip distributor said that sales and procurement teams have been rushing to buy Nexperia’s products in the past few days, and there have also been delays in order lead times. Currently, the lead time is basically 12 weeks, and the lead time for some specific models may be even longer.

Another distributor noted that Nexperia has many general-purpose components, and the full-line shipment from the original factory may now be affected, so everyone is scrambling to purchase. Nevertheless, some distributors that handle Nexperia’s products said they still have some inventory on hand, and it is more important to provide good services to their existing end customers.

In terms of prices, a Nexperia agent mentioned that the premium on Nexperia’s materials has been severe recently. Some other chip agents stated that they can ship goods now, with previous orders executed at the original price, but the situation for future orders remains uncertain. Additionally, a few days ago, news also spread in the chip market that some (or all) chips manufactured by Nexperia in mainland China have been banned from export. Based on our understanding, this incident is likely to be true, and friends who work as agents said they have also received relevant notifications. Driven by the overlap of these news events in the past two days, the market sentiment of the chip distribution sector has started to heat up. What is your view on this?