Wingtech Technology has recently kept investors on edge, with rumors of Anshi Semiconductor being frozen in the Netherlands, followed by news of Chinese factories resuming shipments. On October 31, the stock price rose by 3.05%, closing at 45 yuan. However, the two main concerns for everyone are: how will Anshi’s situation end? Will the government really intervene?
First, let’s clarify the latest developments; this plot twist is more thrilling than a TV drama. At the end of September, the Netherlands suddenly took action, invoking an old law from 1952 to take over Anshi Semiconductor, and dismissed Wingtech’s CEO Zhang Xuezheng, citing “national security” as the reason. Then, on October 30, just as the US and China reached a consensus, with the US suspending the restrictive regulations, the Netherlands found itself in a dilemma. More crucially, on November 1, Reuters reported that the White House would ease restrictions, allowing Anshi’s Chinese factories to resume shipments. This move clearly shows that our pressure has had an effect.
Some may wonder, isn’t it just a subsidiary? Why such a big deal? You are too naive; Anshi Semiconductor is the lifeline of Wingtech. The company was acquired at a high price to fill the gap in our country’s semiconductor standard components. Currently, Anshi is one of the top three suppliers of standard components globally, with its Dongguan factory accounting for half of the world’s output, and European automotive manufacturers rely on it for supply. When the Netherlands took over, China immediately retaliated with an export ban, preventing Anshi’s chips from being sold, which alarmed European car manufacturers who warned of production halts. This is our leverage.
The government’s counterattack has actually begun long ago, not just empty rhetoric but concrete actions. The Ministry of Commerce promptly stated that during negotiations with the US, this issue was used as leverage, forcing the US to suspend its restrictions. Moreover, Wingtech’s response has been clearly strategic: Anshi China announced its independent operation, severing ties with the Dutch headquarters, employees’ accounts were frozen as a self-rescue measure, and they ensured domestic supply chains to guarantee shipments, even issuing a statement that the dismissal in the Netherlands does not apply in China. If there wasn’t some support behind this, could they be so assertive?
However, don’t just get carried away by the good news; there are plenty of pitfalls. The third-quarter report looks alarming, with net profit increasing by 2.79 times, but revenue plummeting by 77%. Although the semiconductor business grew by 12.2%, if Anshi’s control is not regained by the end of the year, profits will take a hit. Even more critically, the previous supply chain was a mess, and Anshi chips in Huaqiangbei were being traded at inflated prices with no availability. Now that shipments have just resumed, whether they can stabilize their customer base remains uncertain.
Currently, the most interesting aspect is Wingtech’s attitude, which is quite assertive, stating: If you want the Chinese factory to ship, fine, first restore Zhang Xuezheng’s position, otherwise, no deal. This stance is correct; we cannot let others treat us like a soft target. Additionally, the company has urgently replaced its president, promoting Anshi’s Shen Xinjia, who understands law and cross-border business, clearly aimed at resolving this situation.
As for whether the government will continue to retaliate, the answer is certainly yes, but not recklessly. The semiconductor industry is a key sector that the country is committed to protecting, and policies and funding have never been lacking. The ability to force the US and the Netherlands to ease restrictions this time is because we have grasped the critical point—the lifeline of the European automotive supply chain. If the Netherlands dares to stir trouble again, there will likely be harsher measures, such as increasing support for domestic alternative technologies, as we have already absorbed much of Anshi’s technology.
Finally, to those holding shares, let me be frank: this wave of good news will certainly support the stock price in the short term, but don’t expect it to skyrocket. The 45 yuan position is not low; keep an eye on two key signals: whether Zhang Xuezheng’s position can be restored and when Anshi China’s shipment volume will return to normal. In the long run, as long as Anshi’s control can be regained, Wingtech, relying on semiconductors and automotive electronics, still has hope. After all, the country aims for semiconductor self-sufficiency, and companies like Wingtech, which have real technology, will not be easily abandoned.
In summary, this matter is not just Wingtech’s battle; it is a microcosm of our semiconductor industry grappling with foreign powers. If we win, the path ahead will be smoother; if we lose, the cost will be significant. As it stands, we seem to have the upper hand, but in stock trading, one must always leave a way out and not bet everything.