Nexperia, Wingtech set for fresh face-off in January with US$8 billion at stake

Dutch chipmaker Nexperia and its Chinese parent, Wingtech Technology, are set for another showdown in early 2026, as the legal battle over control of the semiconductor firm intensifies.\nThe two sides will face off before the Dutch Enterprise Chamber on January 14, a court representative told the Post on Tuesday, speaking on condition of anonymity.\nThe hearing aims to determine whether there were valid reasons to doubt the sound management of Nexperia before the chamber’s ruling in early October, according to a Nexperia spokesman who also declined to be named.\nThat ruling removed Zhang Xuezheng as CEO following an emergency hearing on October 7, where the chamber – a special court handling unique corporate law disputes in the Netherlands – concluded that there were grounds to question his leadership.\nWingtech, however, is escalating its counterattack. The company is preparing a “multi-track legal strategy” that – aside from the chamber hearing – includes filing objections against the administrative order of the Dutch Ministry of Economic Affairs and lodging an appeal before the Dutch Supreme Court, Wingtech said in a statement to the Post on Tuesday.\nCrucially, the strategy involves preparations for bilateral investment treaty (BIT) international arbitrations. Wingtech intends to seek compensation equivalent to the full value of Nexperia – around US$8 billion – if the issue is not settled by April 15, the statement said, with the company urging Beijing to continue supporting its fight to regain control of Nexperia Netherlands.\nIt is puzzling that, in the face of global industry anxiety, the Dutch side remains indifferent and stubborn\nChinese Ministry of Commerce\nThe saga has become a flashpoint in broader geopolitical tensions after the Dutch government took the unusual step of seizing control of Nexperia on September 30. Citing national security concerns, officials invoked a law that had lain dormant since 1952. Beijing retaliated by choking off chip flows, disrupting automotive supply chains.\nIn November, the Dutch government suspended the Cold War-era act as a gesture of goodwill, and tensions eased as both sides engaged in negotiations. Vincent Karremans, the Dutch economy minister, admitted in early December that he was blindsided by Beijing’s retaliation.\nOn Tuesday, Wingtech’s statement said: “As a Chinese company that has made substantial strategic investments in the Netherlands, Wingtech’s experience concerns not only its own interests, but also the confidence of Chinese overseas investors in the fairness and predictability of the international investment environment.”\nA spokesman for China’s Ministry of Commerce on Wednesday once again called on the Dutch government to refrain from acting unilaterally and to remove obstacles to the stability of the global semiconductor supply chain. The comments were in response to a December 24 report by Dutch newspaper De Telegraaf in which Karremans insisted the decision was necessary as he advocated for tough measures.\n“It is puzzling that, in the face of global industry anxiety, the Dutch side remains indifferent and stubborn and shows no sense of responsibility for the safety of the global semiconductor supply chain by taking any substantive actions,” the ministry spokesman said.\n\n\nAccording to Wingtech’s statement, the company and its Hong Kong-based subsidiary, Yucheng Holdings, sent formal notices of dispute to the Dutch government on October 15, based on the China-Netherlands Bilateral Investment Treaty and the Hong Kong-Netherlands Bilateral Investment Treaty.\nBoth treaties specify that one party can expropriate the investment of the other party only if the measure is taken in the public interest, on legal and non-discriminatory grounds, and with compensation equivalent to the value of the expropriated investment at the time the action is announced.\nWingtech further said that, even if its control over Nexperia Netherlands were restored, it would still seek compensation for “significant losses caused by the Dutch government’s improper conduct”. This includes supply-chain disruptions, damage to customer relationships, impact on employee morale, and reputational harm, which the firm considers “profound and long-lasting”, according to the statement.\nNexperia Netherlands declined to comment on the arbitration process, given that it is directed at the Dutch government.\nThe prospect of Wingtech’s legal challenge in the Netherlands remains unclear, as Chinese companies have struggled with similar challenges in Europe.\nIn November 2024, the British government ordered the Chinese owners of UK chipmaker Future Technology Devices International to sell their 80.2 per cent stake acquired in 2021, citing national security risks. The owners appealed to the UK High Court twice in 2025, but both attempts were rejected.\nAdditional reporting by Kandy Wong\n