Court deepens Nexperia probe, extends CEO suspension

On 11 February a Dutch court ordered an investigation into alleged mismanagement at Chinese-owned chipmaker Nexperia and upheld an October 2025 decision suspending its Chief Executive Zhang Xuezheng, also the founder of parent company Wingtech. The Amsterdam Enterprise Chamber said valid reasons exist to doubt sound policy and business conduct at the firm, leaving control in the hands of its European management team that has overseen operations since Dutch state intervention in September.

The ruling deepens a legal dispute that has left global automotive supply chains reeling after Nexperia’s Dutch and Chinese operations were forced to effectively split. Restrictions on Wingtech’s control contributed to the company suffering a preliminary net loss of at least CN¥9bn (US$1.3bn) for 2025. 

Now, Wingtech is threatening international arbitration and claiming damages of up to US$8bn from the Dutch government over what it characterises as “tantamount to a full expropriation”. The Dutch state itself maintains it has “concrete information” demonstrating that Beijing imposed export curbs at Wingtech’s “express request”.

Automakers and suppliers were initially blindsided by the events of September, but found a workaround to bypass Nexperia’s internal battle by purchasing wafers directly from the European arm and shipping them to China via Hong Kong for assembly, with production recovering to roughly half of pre-crisis levels. 

Hamburg-based operations had refused to supply wafers to Chinese facilities due to payment disputes following the Dutch government’s September seizure of control. This has had a material impact on the operations of global automakers: Honda, for example, has extended production halts at Chinese plants due to the resulting chip shortages. Analysts and executives alike continue to sound the  warned long-term supply concerns persist despite the temporary solution.

The Dutch government dusted off a 1952 Cold War-era law to carry out the September raid, alleging Zhang was improperly transferring key assets and technology out of Europe. This was quickly followed by the Enterprise Chamber placing Nexperia shares with a court-appointed custodian. 

Beijing retaliated by blocking exports from Nexperia’s Chinese unit, leading to semiconductor shortages that hampered automotive production globally. Tensions eased in November after China relaxed export restrictions and the Netherlands suspended its powers, although internal discord has persisted despite this apparent ceasefire.

The latest investigation is expected to take several months, during which time Zhang will remain suspended and the temporary director appointment will stay in effect. On 10 February, Wingtech Chair Ruby Yang called for the Amsterdam court to restore rights to shareholders. In a statement, she remarked: “A full rescue of the business is only possible if Wingtech regains control […] Wingtech has never engaged in any transfer of intellectual property or production capacity from Nexperia.”

Nexperia Netherlands responded that it has made “relentless efforts” to ensure supply chain continuity and criticised Wingtech’s comments as “misleading”. “Wingtech makes the restoration of its full shareholder rights a condition for re-establishing Nexperia’s supply chain operations in China despite causing major harm to customers, employees and other stakeholders.”