Court weighs whether to order investigation into Nexperia management
Dutch-based semiconductor maker Nexperia faced a corporate mismanagement case in Amsterdam on Wednesday, as lawyers for the company and its Chinese owners argued before the enterprise chamber of the Amsterdam Court of Appeal. The hearing was set to decide whether the three-judge panel should order an investigation into alleged mismanagement at Nexperia, and no immediate decision was expected, according to the case hearing report.
The dispute has unfolded against a broader backdrop involving Nexperia’s Dutch headquarters, its Chinese operations, and government actions linked to national security concerns. In October, the Dutch government said it had effectively seized control of the company since late September, citing national security concerns. Around that same period, Nexperia’s Chinese CEO Zhang Xuezheng—also described as the founder of Nexperia’s owner Wingtech—was replaced following claims of mismanagement and fears involving intellectual property rights.
Wingtech and Zhang urge against an investigation
At Wednesday’s hearing, lawyers for Zhang and Wingtech urged the court not to order an investigation. They also said Wingtech had been blindsided by the Dutch government’s move. The report said Zhang was not present in court for the hearing.
Nexperia’s legal position emphasized the dynamics between its Dutch unit and its Chinese and holding-company stakeholders. Nexperia lawyer Jeroen van der Schriek told the three-judge panel that the behavior of Wingtech and the Hong Kong-based holding company Yuching since October “makes it clear that they are willing to subordinate Nexperia’s interests to other interests.”
Chip supply fears ripple to carmakers
The courtroom dispute has also fed concerns about semiconductor supply for the global auto industry. In October, the report said Beijing temporarily blocked the export of Nexperia chips from its plant in China. It said the chips are used widely by carmakers including those in North America, Japan and South Korea, citing analysts, and described global auto manufacturers scrambling for supplies and alternatives after the export restrictions.
The report said the export ban was later lifted after U.S. President Donald Trump met with Chinese leader Xi Jinping in late October. It also said the Dutch government in November relinquished its control of Nexperia as a “show of goodwill,” while a standoff between the Netherlands headquarters and the Chinese unit continued to fuel supply chain concerns.
Nexperia’s Chinese arm said the Dutch headquarters interrupted shipments of wafers to its Chinese factory, impacting its core production operations and weighing on its ability to deliver finished products. Nexperia headquarters responded by saying the Chinese unit had ignored instructions from the head office. As the crisis unfolded, the report said car manufacturers including Honda had to halt production of some cars, and that Mercedes-Benz was among those scrambling to find alternatives.
China presses Netherlands over alleged causes
In late December, China’s Ministry of Commerce demanded that the Netherlands immediately take steps and correct its “mistakes,” according to the report. The ministry blamed the Dutch government for causing a global chip supply chain crisis, and the demand came after the earlier actions and counteractions between the two sides amid the Nexperia dispute.
Company history and wider security scrutiny
Nexperia was spun off from Philips Semiconductors two decades ago, and the report said Wingtech purchased it in 2018. It also said the British government in 2023 blocked Nexperia’s bid to acquire Wales-based chipmaker Newport Wafer Fab, citing national security risks.