Nexperia Control Battle: Chinese Owner Wingtech Vows Legal War Against Dutch Government & Court Ruling

Chinese Owner Wingtech Pledges All Legal Means to Reclaim Nexperia Control Amid Dutch Tensions

Wingtech Technology, the Chinese parent company of Dutch chipmaker Nexperia, has declared its firm intention to employ every available legal avenue to regain full operational control over the semiconductor firm. This assertive stance puts significant pressure on the Dutch government to fully reinstate the rights of its Chinese shareholders, following a period of contentious intervention.

The Ongoing Dispute: Dutch Ruling and Wingtech's Grievances

Wingtech's announcement comes just a day after the Dutch government decided to suspend its direct intervention in Nexperia's affairs. However, the Shanghai-listed company quickly clarified that this move is merely a preliminary step, as the crucial ruling made by the Dutch Enterprise Chamber on October 7 remains in effect. This pivotal court decision stripped Wingtech of its shareholder control and led to the removal of former CEO Zhang Xuezheng.

In a Chinese-language statement, Wingtech asserted that “The control of Nexperia has not yet returned to its legitimate owner.” The company further highlighted that “The restrictions and infringements upon the lawful rights and interests of Chinese shareholders and personnel continue to persist.” According to Wingtech, while the revocation of the executive order was a necessary initial step, the Dutch Ministry of Economic Affairs must undertake further actions to restore the situation to its state prior to the Dutch authorities' initial intervention.

Global Implications of a Protracted Legal Battle

The internal conflict has seen Nexperia's Dutch headquarters in Nijmegen and its China operations engaged in an open spat, creating instability within the company. This ongoing turmoil threatens to disrupt critical chip supplies to global car manufacturers, raising concerns across the automotive industry.

Legal experts anticipate a prolonged and arduous court battle. They suggest that Wingtech's challenge against the Dutch Enterprise Chamber's decision could evolve into a “marathon” legal fight, potentially stretching out for up to three and a half years before a final resolution is reached. This protracted dispute underscores the escalating tech tensions between China and the Netherlands, with Nexperia at its epicenter.