Wingtech Technology Co., Ltd. (600745.SH) announced a major asset disposal plan on March 9, proposing to transfer the entire equity of five subsidiaries and related business asset packages of three companies to Luxshare Precision Industry Co., Ltd. and its subsidiary Luxshare Communications for cash. Except for the Indian business asset package, which is subject to arbitration, ownership changes for the remaining target assets have been completed with no other litigation disputes. According to a previous announcement, the transaction amount is 4.389 billion yuan.
Zhang Xinyuan, a senior corporate strategy and technology innovation management expert and head of Kefangde Consulting, believes that Wingtech's divestiture of its low-margin, high-loss ODM business is a proactive move to cut losses and focus amid a downturn in the industry cycle. This allows the company to concentrate on its semiconductor business with a lighter load. Although short-term revenue may shrink and performance may face pressure, it is beneficial for long-term profitability. Luxshare Precision's decision to take over the business is driven by its interest in acquiring customers and production capacity to strengthen its ODM market share, with technology patents being a secondary consideration. In the long run, integration risks remain, and the value of the transaction will depend on the handover and operational outcomes.
Not long ago, a performance forecast projecting a maximum loss of 13.5 billion yuan for Wingtech Technology cast a shadow over its core asset, Nexperia Semiconductor, which is embroiled in a control dispute. According to the performance forecast disclosed on January 30, the company expects a net loss of 9 billion to 13.5 billion yuan for 2025.
Wingtech Technology stated that due to the restricted control over Nexperia during the reporting period, it will recognize significant investment losses and asset impairment losses, which will substantially impact its performance.
The root of this turmoil lies in the ongoing control dispute over Nexperia Semiconductor, which has been brewing since the second half of 2025 and remains unresolved.
However, in a positive development, Nexperia Semiconductor (China) announced on March 9, 2026, that it has achieved small-batch production of bipolar discrete devices based on its self-developed "12-inch platform" and successfully tested new ESD protection devices. This breakthrough signifies a turning point for Nexperia China, which had faced supply cuts from Nexperia Netherlands for six months. So far, Nexperia Netherlands has not resumed wafer supply to Nexperia China's factories and has not responded to this manufacturing breakthrough.
As of March 13, Wingtech Technology's stock closed at 33.11 yuan per share, with a total market capitalization of 41.21 billion yuan.
Luxshare Precision, the acquirer, is a well-known Apple supply chain company founded in 2004 and listed on the Shenzhen Stock Exchange's SME board in 2010. Its actual controllers are the couple Wang Laisheng and Wu Chunyuan, with Wu Chunyuan renowned in the industry as the "Queen of the Apple Supply Chain" for her deep involvement, strategic positioning, and strong control over the company.
Under the leadership of Wu Chunyuan and her husband, Luxshare Precision has rapidly grown from a modest connector manufacturer into a core Apple supplier. Its business spans consumer electronics, automotive, communications, industrial, and medical sectors, primarily providing integrated intelligent manufacturing solutions from core components and modules to system assembly. As of March 13, 2026, Luxshare Precision's total market capitalization reached 359.4 billion yuan, making it a highly influential leader in the Apple supply chain.
Regarding the rationale for taking over Wingtech's business, Luxshare Precision stated in an investor briefing in November 2025 that it requires Wingtech's ODM capabilities to support the future development of AI edge products, which demand stronger ODM/JDM capabilities. Wingtech's engineering team of two to three thousand people and its extensive procurement supply chain for mobile phones and tablets can quickly enhance Luxshare Precision's development of AI edge products.
According to the "Major Asset Disposal Report (Draft)" disclosed by Wingtech Technology on May 16, 2025, the transaction amount is 4.389 billion yuan. The handover of the target assets is underway, with equity transfers for Kunming Zhitong, Shenzhen Wingtech, Huangshi Zhitong, Kunming Wenxun, and related business asset packages for Wuxi Wingtech and Wuxi Wenxun already completed. The transfer of assets related to Wingtech India has also been finalized.
However, disputes persist between the two parties regarding the Indian business asset package. On January 12, 2026, Wingtech Technology stated that both parties had completed the asset handover as agreed in the协议. However, Luxshare unilaterally sought to terminate the "India Asset Agreement," citing issues with协议 fulfillment. Wingtech is currently addressing the matter through arbitration rules and relevant laws, while Luxshare has not responded to the issue.
An announcement on March 11, 2026, revealed that Luxshare Liantao had submitted the dispute to the Singapore International Arbitration Centre (SIAC). As of the announcement date, the arbitration had not yet commenced and was still in the tribunal formation stage. Wingtech Technology has initiated legal proceedings in response, preparing relevant legal documents, confirming arbitration procedures, and evaluating feasible legal avenues.
Wingtech Technology cautioned that the final arbitration outcome and liability attribution remain uncertain, and the specific financial impact on the company cannot be accurately estimated at this time. The company will continue to address the dispute and seek solutions within the legal framework to protect its interests.
After divesting its low-margin, high-loss ODM business, Wingtech Technology will focus entirely on its semiconductor business, with its core asset being Nexperia Semiconductor—an IDM company with over 60 years of industry experience, originally part of Philips' semiconductor division, and leading the global automotive semiconductor market.
The company's current challenges stem from its inclusion in the U.S. Entity List in December 2024, followed by tightened controls from the Netherlands. On September 30, 2025, the Dutch Ministry of Economic Affairs and Climate Policy issued a ministerial order to Nexperia Semiconductor, restricting asset and intellectual property adjustments for its 30 global entities for one year. The following day, Nexperia executives submitted an urgent request to a local enterprise court, which suspended the duties of Wingtech founder Zhang Xuezheng and placed Nexperia's shares under third-party trusteeship. A final ruling on October 6 further solidified these interim measures.
The Dutch government also took control of Nexperia Semiconductor under the Commodities Availability Act, alleging that Zhang Xuezheng had improperly transferred Nexperia's resources, escalating tensions between the parties.
In its third-quarter report for 2025, Wingtech Technology warned of potential performance declines, stating that if control over Nexperia is not restored by the end of 2025, the company could face risks of reduced revenue, profits, and cash flow.
The dispute continued into 2026. On February 11, the Dutch Enterprise Court announced a ruling to investigate alleged mismanagement at Nexperia Semiconductor. The following day, Wingtech Technology issued a statement expressing strong dissatisfaction with the court's decision, which neither revoked the interim measures nor restored Wingtech's legitimate control, while expanding the investigation to include Nexperia's current interim management. The company vowed to continue seeking legal recourse to regain full control and governance of Nexperia.
On March 6, Nexperia Semiconductor issued a notice to customers, stating that effective March 3, 2026, Nexperia B.V. (Netherlands) had disabled office accounts for all employees in China, disrupting access to critical systems like Office 365 and SAP, significantly impacting Nexperia China's operations. Some production processes, such as converting customer-supplied wafers into production orders via SAP, were interrupted, though orders already in the SAP system were unaffected. Nexperia China's IT and business departments activated emergency plans to restore key systems and production scheduling, with most operations now resumed to ensure basic production. The company is working to minimize potential impacts on future production and deliveries.
Affected by the Entity List and restricted control over Nexperia, Wingtech's second-largest shareholder, Wuxi Guolian, reduced its holdings twice. From June to September 2025, it planned to sell up to 3% of total shares but only sold 0.9979%. In November, it again planned to sell up to 37.34 million shares (3% of total shares), citing its own operational needs. As of March 13, 2026, Wuxi Guolian still held 62.2326 million shares (5%) of Wingtech Technology.
It is worth noting that this is not the first time Wingtech Technology has faced challenges with overseas investments. In 2021, Nexperia acquired U.K.-based NWF to expand production capacity, but in 2022, the U.K. applied newly enacted laws to retroactively review the acquisition. After unsuccessful legal challenges, Wingtech sold NWF's equity to U.S.-based Vishay in November 2023, completing the handover in March 2024.
As a global ODM manufacturing leader, Wingtech Technology has chosen to sell its core business and focus on semiconductors. Facing unresolved disputes with Nexperia Netherlands, the company is striving to transform and survive. With negative factors potentially exhausted, the question remains: Can Wingtech Technology emerge from its低谷?
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