Global Chip Drama Moves to The Hague: Wingtech Challenges Loss of Nexperia Control at Supreme Court
The high-stakes legal drama swirling around Nexperia, the Netherlands-based chipmaker, has escalated once again, moving from the regional court to the highest judicial authority in the country. China’s Wingtech Technology Co. Ltd., the parent company of Nexperia, has filed an appeal with the Netherlands’ Supreme Court, challenging the decisions that effectively stripped it of control over its subsidiary. This move underscores the deep and ongoing tensions over a critical piece of the global semiconductor supply chain.
At the heart of the appeal are a series of emergency rulings issued by the Amsterdam Enterprise Court in October. Those decisions included the suspension of Nexperia’s then-CEO, Zhang Xuezheng, who is also the founder of Wingtech. Furthermore, the court placed the vast majority of Nexperia’s shares under the custodianship of a court-appointed trustee, effectively side-lining Wingtech’s control.
Wingtech argues that the Amsterdam court’s actions were improper and a breach of due process. The company’s legal filings claim the judges ruled *ex parte*—meaning without hearing arguments from Wingtech—and that this constituted an “extraordinary and historic” violation of their rights.
A Geopolitical Tug-of-War
This corporate battle is inextricably linked to a larger geopolitical tug-of-war. The court actions followed a dramatic intervention by the Dutch government, which, just days earlier, moved to seize control of Nexperia under the never-before-used 1952 Goods Availability Act. The government’s justification was a concern that Wingtech was moving intellectual property and core operations out of Europe and into China, raising national security flags and fears over the stability of Europe’s chip supply.
While the Dutch government later suspended its administrative intervention following “constructive talks” with Beijing, the court’s ruling—the one Wingtech is now appealing—remains fully in effect. This legal separation means that despite a political truce, the practical struggle for control of the chipmaker continues.
The situation has had far-reaching industrial consequences. Nexperia, which manufactures components like diodes, transistors, and logic devices, is a critical supplier to the automotive industry, among others. The internal conflict has already contributed to shortages of chips vital for car electrical systems, adding another headache to the global semiconductor crunch.
The Acquisition Background
Nexperia, headquartered in Nijmegen, Netherlands, is a second-generation spin-off of Philips’ semiconductor division, which later became NXP Semiconductors. Wingtech, a partially state-owned Chinese electronics manufacturer, acquired a controlling stake in the company in 2018 and 2019.
As the legal challenge moves to the Supreme Court, the outcome will not only determine the future ownership of a key European chip asset but will also send a major signal about the limits of government intervention in foreign-owned companies operating in strategically sensitive sectors. Given the complexity and significance of the case, a final ruling from the high court is not expected to be swift.