Miscellaneous News

AndrewS said:

That assumes Wingtech was actually planning to shut down the fabs in Europe.

The thing is, the fabs in Europe already exist, have been fully depreciated. And i general, the ongoing operating costs should be very low compared to the ongoing capital cost for a new fab.

So why not keep them operating?

But I can see the R&D being shut down in Europe. This is definitely better done in China, because that is where the new fabs (and associated new chip designs) are required.

Plus there's a better supply of chip designers and lower costs in China.

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Fully depreciated simply mean you can’t charge depreciation expenses against your revenues, an accounting trick only. In reality the costs of the factories are a sunk cost, they have no bearings on the cashflow.

The Shanghai fab is a 12-inch one which means the day-to-day production cost is much lower than the old 6-inch and 8-inch fabs in Europe. The capacity of the Shanghai fab is 2-3x of the entire European operation according to this podcast:

Might as well use this opportunity to get rid of the European operations except sales and support.

RoastGooseHKer said:

Well back in 2021, EU imposed sanctions of a number of Chinese officials over the whole Xinjiang drama. China retaliated by sanctioning EU lawmakers. That pretty much put an end to the Sino-EU bonhomie of the 2010s and marked a majour diplomatic victory for the Biden administration. This year, China listed the sanctions over those European lawmakers in an attempt to ease tensions, but EU not only failed to reciprocate, but also continued to add more sanctions and tariffs on Chinese entities. Clearly the EU is not interested in improving ties with China, but Beijing is still kissing Brussels’ arse with the hope that the later would not side with the US in the ongoing trade war. In other words, there appears to be either naïveté among Chinese foreign policy makers’ view on EU or Beijing could simply lack certain leverages to restrain the bloc.

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Get your facts straight. China sanctioned double the number of people Eurotards did. Lifting the sanctions on members of Eurotards parliament simply brought the number down to the Eurotard level.

vincent said:

Get your facts straight. China sanctioned double the number of people Eurotards did. Lifting the sanctions on members of Eurotards parliament simply brought the number down to the Eurotard level.

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Please don’t insult mentally disabled people by comparing them to Euro leaders — it’s Eurocucks.

RoastGooseHKer said:

I agree with your point on divide and rule. The problem is exactly what you said. EU is now run by pro-American libs like VDL, staunch protectionists drunk on excess welfare, and frontline states like Baltic three and Poland. Even in Germany, whilst the majourity could support AFD or Christian democrats, it is the pro-American but woke Green Party folks who have final says. In other words, the EU has ALREADY taken side with the US. And then there is ideology. Despite coming from a position of weakness, the EU still insists on spreading its values over others. So clearly the 大字报 message coming from Brussels to Beijing is “nope, we are not friends, and we have no desire to be buddies, AND stop exporting your superior but cheaper goods because our lazy arse workers don’t want to compete with yours.” So Beijing’s attempt to cozy up with the EU would likely be futile with some exceptions like Hungary and Slovakia. But these two countries are voiceless and are simply too dependent to its neighbours.

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VDL has no power as "President" which is a largely ceremonial or diplomatic role, not executive, so she can yapp all she wants about "values", "de-risking", "balance", she has no real power at the end of the day.

EU derives it's influence from it's most powerful member states. The real power players are France and Germany, both of which want to maintain trade ties and relationships with China. Germany has long opposed to de-coupling and angering China. This is why China directly bypasses VDL on most matters and talks to France and Germany directly.

I don't know why you think Baltic three or Poland have any influence, if they did, EU would already been at war with Russia now. You overestimate the influence of these peripheral states and VDL.

Thecore said:

The Chinese don't understand the laws of the universe, namely, law #1 in which god said "Behold, white people, I created this world solely for your enjoyment and to be entirely under your dominion."

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That's because China is older than their god.

zbb said:

I'm sorry but I have to say what kind of cucked thinking is that? Keeping something that's yours and not handing it over to a robber is not retaliation at all.

Say you have some of your money sitting on a table and I grabbed it and declared that all your money belongs to me. Would you consider it all even between us because you got to keep the money in your wallet? Is not handing over the money in your wallet a proportional retaliation of me robbing you?

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The Nexperia’s European physical “assets” are more likely to be liabilities at this point. The factories are old, use old technology with high production cost, high labour cost with large potential severance packages. Might as well take the opportunity to peel off the European physical assets.

vincent said:

The Nexperia’s European physical “assets” are more likely to be liabilities at this point. The factories are old, use old technology with high production cost, high cost labour cost with large potential severance packages. Might as well take the opportunity to peel off the European physical assets.

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pretty much, all this debacle is simply a sign that nexperia needs to physically leave europe.

siegecrossbow said:

Why go to all this effort when you can buy off the shelf solutions from AliExpress. At least they can hit more than two targets.

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We had both a german Army Major and lieutenant colonel tell us just two weeks ago, that this company was going to bring the big change to Bundeswehr....

Guess who got themselves involved in the whole Louvre theft debacle to the surprise of absolutely no one

RoastGooseHKer said:

But is this CONTROL permanent, meaning WingTech is forever out of the game without compensation should Beijing not intervene? Or the Dutch simply controls Nexperia, but WingTech could continue to receive revenue and other benefits from Nexperia just short of sitting on the board?

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Nexperia is fully Wingtech right now, Wingtech has both wafer and packaging, they're the one shipping to customers and receiving revenue for them. The Dutch is the one that, after their takeover, ceases to receive revenue from the real Nexperia making actual sales.

The Dutch simply giving back shares and Nexperia Europe resuming operations, i.e. going back to before the Dutch move would not be the ideal outcome. Nexperia is in a field that has a lot of fully Chinese competitors, keeping Nexperia's European plants open is a previlage China extended to them, not something in China's interest. After the Dutch move China's goal should be to punish Europe, not to return to the status-quo and let them get away with it, if a thief broke into your house and stole something you planned on throwing out, your goal isn't to get the stuff back but to punish the theif.

IMO the ideal outcome is Nexperia China become/remain as it is currently a fully independent entity, Nexperia Europe gets fully cut off, Wingtech writes off European assets but make up for it by dumping all liabilities, pensions, debts and operating expenses for European plants onto the Dutch taxpayers. All Nexperia business going forward stays within China, European Nexperia dies, Nexperia becomes fully 100% Chinese with no European containmation.

I would also like to see China sanction anyone who tries to buy the stolen assets from the Dutch goverment after they're forced to sell to maximize puinishmnt on the Dutch people.