Chinese electronics manufacturer Wingtech has released a bleak 2025 earnings forecast, projecting a staggering net loss between 9 billion to 13.5 billion yuan (approx. $1.25B-$1.9B USD). The massive loss is primarily attributed to major impairment charges related to its critical subsidiary, the power semiconductor firm Nexperia.

While Wingtech reported strong profits in the first three quarters of 2025, its performance sharply reversed in Q4. This downturn stemmed from a legal dispute in the Netherlands, where a Dutch court restricted Wingtech's control over Nexperia's operations there. The company stated this resulted in the need to recognize significant investment losses and asset impairments.

Notably, the company's projected core operational loss is much smaller, ranging from 200 to 300 million yuan. This indicates the vast majority of the projected loss—an estimated 8.8 to 13.2 billion yuan—comes from the one-time Nexperia-related write-downs. The situation has accelerated a division, with the Dutch Nexperia entity cutting off wafer supply and the Chinese entity building its own independent supply chain.

Wingtech's Chairman, Yang Mu, has taken a firm stance, demanding the full restoration of shareholder rights and legal control over Nexperia. The company is prepared for international arbitration, with potential claims reaching up to $8 billion.

ICgoodFind : Wingtech's projected loss highlights the severe short-term impact of its control dispute over Nexperia. The ongoing conflict and the resulting supply chain restructuring will profoundly reshape its semiconductor strategy and market position.