The court upheld the October decision to suspend the company’s chief executive in China, Zhang Xuezheng.
Nexperia’s Chinese owner Wingtech was unable to sway the Amsterdam Court of Appeal and regain control of the Dutch chipmaker that plays a key role in the global automotive industry.
According to a translated press statement published yesterday (11 February), the commercial court instead ordered an investigation into Nexperia, citing “reasonable grounds to doubt the correct policy and correct course of affairs” in the company.
The court also upheld an October decision to suspend the company’s China chief executive Zhang Xuezheng and direct EU-based directors. Xuezheng’s shares were transferred to the trust, but he still had economic benefits.
The seizure of Nexperia began on September 30 last year, when the Dutch government invoked the rarely used Asset Recovery Act, pointing to “serious management deficiencies” at the company.
The Netherlands believes that allegations of mismanagement at Nexperia pose a “threat” to European semiconductor power.
In response to the seizure, China halted shipments of Nexperia chips in early October, causing disruptions affecting nearly three-quarters of the company’s output. On November 9, however, the export ban was lifted.
In a statement issued that month, the Dutch government said the concerns surrounding Nexperia stemmed from the now suspended CEO being involved in the “improper transfer of product assets, funds, technology and know-how to a foreign company”.
China’s and Europe’s Nexperia weapons have stopped cooperating since the takeover, and despite signs of an easing of tensions in November, problems between the groups persist.
The Dutch company stopped sending silicon wafers to its Chinese subsidiary last year, saying the local unit refused to pay. According to the Financial Times, customers now buy wafers from the European unit and go to the Chinese unit to assemble them for themselves. Nexperia supplies its chips to the likes of Volvo, JLR and Volkswagen.
In its order following a public hearing on 14 January, the Dutch court found “indications that the negligent act was taken with a conflict of interest” in Nexperia.
It said Xuezheng changed the company’s strategy without consulting other board members. In a lawsuit filed last month, Nexperia’s lawyers said Zhang shipped equipment to China and used its equipment at Wing Systems, a separate company he owns.
Responding to yesterday’s instructions, Nexperia said it accepts the decision and is determined to fully comply with the investigation.
“Despite the challenging environment, our core business continues to be healthy and strong and we are committed to being a strong, reliable partner for all our stakeholders including customers,” it said.
Dutch-headquartered Nexperia – an offshoot of NXP – was acquired by Chinese contract manufacturing giant Wingtech Technology in 2018.
Last year’s takeover caused a major strain in the relationship between parent company Wingtech and Nexperia, who accused each other of disrupting operations and undermining the business.
In 2024, the US government added Wingtech to its Enterprise List – a designation given to companies that could pose a threat to national security. In 2022, the UK government ordered Wingtech-owned Nexperia to postpone its acquisition of the Newport Wafer Fab, citing security risks to the country.
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