Wingtech, the Chinese parent company of Dutch chipmaker Nexperia, has warned investors of a potential cash flow squeeze if it fails to regain operational control of its European subsidiary, despite posting a 280% surge in quarterly net profit. The company's woes and supply disruptions have multiple car makers worldwide preparing for shutdowns as the supply of critical semiconductors for automobiles dwindle.
The alert came via an earnings filing on Friday, in which Wingtech said that Nexperia “may face temporary downward pressure on revenue, profit, and cash flow,” related to governance issues. This is based on a machine translation of the company’s earnings report.
