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China’s Wingtech Technology may pursue international arbitration and seek damages up to USD 8 billion if the dispute over shareholder control of its Dutch chipmaking subsidiary, Nexperia, remains unresolved within six months, according to a company insider.
During the company’s fifth extraordinary general meeting this year, the chairman reaffirmed their position, stating they plan to defend their rights vigorously in the upcoming second hearing scheduled by the Dutch Enterprise Chamber—an arm of the Amsterdam Court of Appeal.
Wingtech temporarily lost control over Nexperia, based in Nijmegen, after the Dutch Ministry of Economic Affairs and Climate Policy issued a national security order on September 30, followed by emergency measures enacted by the Dutch Enterprise Chamber.
In response, Nexperia Netherlands has ceased supplies of semiconductor wafers to Chinese packaging plants. Meanwhile, its domestic division in China is verifying local wafer suppliers to ensure the stability of its supply chain, with efforts expected to conclude between the first and second quarters of the coming year.
At the recent general meeting, the company appointed Gan Peizhong, a respected legal expert, as an independent director to bolster legal safeguarding efforts, according to reports.
Earlier this month, Wingtech held initial consultations with independent directors and stake custodians appointed by the Dutch Enterprise Chamber; however, specifics remain confidential due to legal constraints.
The Dutch ministerial order mandated that Nexperia and its 30 affiliated entities, including subsidiaries, branches, and offices worldwide, refrain from making any changes to assets, intellectual property, operations, or personnel for a year. The Chamber issued an additional ruling on October 7.
Subsequently, the Dutch court appointed an interim management team at Nexperia, which dismissed senior employees of Chinese nationality or background, froze accounts and communications of Chinese staff, suspended salary and social benefits, disconnected the Chinese R&D center from the Dutch headquarters, and halted wafer supplies to Chinese manufacturing facilities.
Although the Dutch economic affairs minister announced the suspension of the administrative order last month, it remains in effect, with the Chamber’s ruling still enforced, which continues to restrict Wingtech’s control over Nexperia.
On December 22, a spokesperson from China’s Ministry of Commerce emphasized that the core issue stems from what they described as improper administrative interference by the Dutch government in the company’s operations.
They called for immediate revocation of the administrative order, the withdrawal of the lawsuit from Nexperia Netherlands’ former senior management, the creation of favorable conditions for corporate negotiations, and the prompt resumption of wafer supplies to alleviate global chip supply concerns.
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