This paper addresses the problem of observer-based control (OBC) for nonlinear systems with time delay (TD). A novel hybrid modeling framework for nonlinear TD systems is first introduced by synergistically combining TD Takagi–Sugeno (TDTS) fuzzy and Lipschitz approaches. The proposed methodology broadens the range of representable systems by enabling Lipschitz nonlinearities to fulfill dual functions: they may describe essential dynamic behaviors of the system or represent aggregated uncertainties, depending on the specific application. The proposed TDTS–Lipschitz (TDTSL) model class features measurable premise variables while accommodating Lipschitz nonlinearities that may depend on unmeasurable system states. Then, through the construction of an appropriate Lyapunov– Krasovskii (L-K) functional, we derive sufficient conditions to ensure exponential stability of the augmented closed-loop model. Subsequently, through a decoupling methodology, these stability conditions are reformulated as a set of linear matrix inequalities (LMIs). Finally, the proposed OBC design is validated through application to a continuous stirred tank reactor (CSTR) with lumped uncertainties.
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