Nexperia dispute highlights Europe’s semiconductor dilemma
Technology
The escalating dispute between the Dutch government, China and chipmaker Nexperia has become a flashpoint in the global semiconductor power struggle. With parent company Wingtech already on a US trade blacklist and facing tighter restrictions, Nexperia’s plan to separate its Chinese and European operations is now in jeopardy. The export ban poses an immediate risk to Europe’s industrial supply chain, especially in the automotive sector. Finding and certifying alternative suppliers could take months, echoing the chip shortages of 2021/22. Strategically, it spotlights the West’s push for technological sovereignty and the Netherlands’ pivotal role in the China–West tech decoupling. Several (Dutch) companies could be affected including ASML, NXP, Philips and ASM International.
Edition: 222
- 17 October, 2025
Philips (PHIA NA) Netherlands
Healthcare
More accounting red flags - PHIA put through a massive €1.7bn of adjustments in FY23 to get from GAAP-based EBITA of €183m to Adjusted EBITA of €1,921m. Restructuring and acquisition-related charges totalled €381m and this figure has been increasing sharply over the last couple of years. The fact that this charge has occurred every year since 2015 should have investors questioning whether this can really be classified as a “one-off”. There has also been some unusually large movements in the Provisions Schedule as well as a decline in Accrued Customer Rebates, where manipulating supplier rebates is notorious as a tool for inflating earnings.
Edition: 181
- 08 March, 2024