Lawyers for Nexperia, a Dutch-based semiconductor manufacturer, and representatives for its Chinese owners argued in an Amsterdam courtroom over whether the company should face a court-ordered investigation into alleged corporate mismanagement. The hearing took place at the enterprise chamber of the Amsterdam Court of Appeal, where the panel was asked to decide whether the threshold had been met to open a formal probe. No immediate ruling was expected at the close of arguments.
The case has drawn attention beyond the Netherlands because Nexperia’s chips are widely used in the automotive sector, making the ownership and governance dispute a potential pressure point for global supply chains. The proceedings follow months of escalating tension surrounding the company’s decision-making and the relationship between its Dutch headquarters and entities linked to its parent group.
Dutch State Intervention Sparked a New Power Struggle
The dispute came into public view in October, when the Dutch government stated that it had effectively taken control of Nexperia since late September, citing national security concerns. As part of that intervention, Zhang Xuezheng, the company’s Chinese CEO and the founder of Wingtech, owner of Nexperia, was replaced. The government action followed claims of mismanagement and concerns that valuable intellectual property could be transferred out of the Netherlands.
In court, lawyers representing Zhang and Wingtech described him as a successful businessman navigating geopolitical headwinds and urged judges not to authorize an investigation. They also argued that the ownership group had been caught off guard by the Dutch government’s move. Zhang did not attend the hearing, according to the report.
Corporate Friction Reached the Auto Supply Chain
During the hearing, Nexperia lawyer Jeroen van der Schriek told the three-judge panel that the conduct of Wingtech and the Hong Kong-based holding company Yuching since October suggested a willingness to place other priorities ahead of Nexperia’s interests.
As the standoff intensified, Beijing temporarily blocked exports of Nexperia chips from the company’s plant in China in October, prompting automakers to search for alternative supplies. Analysts cited by AP said the components are used by car manufacturers in North America, Japan, and South Korea, underlining how quickly a corporate dispute can ripple into manufacturing schedules.
The export restriction was later lifted after U.S. President Donald Trump met with Chinese leader Xi Jinping in late October, according to AP. In November, the Dutch government announced that it would relinquish its control of Nexperia as a “show of goodwill.” Even so, concerns about continuity of supply persisted as the company’s Dutch and Chinese units continued to trade accusations over shipping decisions and compliance with head-office directions.
Wider Scrutiny of Strategic Chip Assets
AP reported that the Chinese unit of Nexperia said the Dutch headquarters had interrupted shipments of wafers to its factory in China, affecting core production operations and its ability to deliver finished products. The Dutch headquarters disputed that account and said the China-based unit had ignored instructions from the head office, reflecting a deeper breakdown in corporate coordination.
Automakers felt the impact as the conflict played out. Honda was cited as halting production of some vehicles, while Mercedes-Benz was among companies seeking alternatives as uncertainty spread through the component pipeline.
The dispute has also become a diplomatic flashpoint. China’s Ministry of Commerce in late December urged the Netherlands to take steps to correct what it called “mistakes,” blaming the Dutch for triggering a broader chip supply-chain disruption.
The case lands amid heightened scrutiny in Europe and beyond over foreign ownership of sensitive semiconductor assets. Nexperia was spun off from Philips Semiconductors about two decades ago and was purchased in 2018 by Wingtech. In 2023, the British government blocked Nexperia’s bid to acquire Newport Wafer Fab in Wales on national security grounds, as noted by AP, highlighting how similar concerns have been raised across multiple jurisdictions.
