In Amsterdam on Wednesday, European managers of Dutch chipmaker Nexperia confronted their Chinese owner Wingtech in court. This hearing represents another stage in a struggle for control that has contributed to shortages of chips used by automobile manufacturers.
The conflict intensified on September 30 when the Dutch government took control of Nexperia, expressing concerns about operations and intellectual property being moved to China. That action was later withdrawn to ease tensions with Beijing.
Nexperia produces silicon wafers in Europe. These discs, which contain multiple chips, are typically shipped to a facility in China for cutting and packaging.
On October 7, the Amsterdam Enterprise Court suspended Wingtech founder Zhang Xuezheng as CEO of Nexperia and removed Wingtech's control over Nexperia shares. The court cited substantial doubts about proper management.
During Wednesday's public hearing, judges will consider arguments on whether to order a full investigation into allegations of mismanagement raised by Nexperia's senior European executives. Alternatively, they might reverse earlier decisions. A ruling will be announced later.
Previously, judges supporting the European executives noted that Zhang might have faced a conflict of interest because he owns a Shanghai factory that sells wafers to Nexperia. They also said Zhang and Wingtech failed to implement governance changes that could have prevented Nexperia from being added to a U.S. blacklist.
Wingtech Chair Ruby Yang stated on Tuesday that reversing these measures is essential to save the company. Wingtech is expected to argue in court that Zhang's plans for Nexperia align with the interests of a Chinese company subsidiary that has substantial sales, customers, and growth prospects in China, the world's largest automotive market.
Zhang is not anticipated to attend personally, but his legal representatives will respond. The Dutch state is likely to back Nexperia.
In 2025, the U.S., Dutch, and Chinese governments all implemented and later rescinded measures affecting Nexperia, referencing their geopolitical and strategic interests.
Nexperia reported $331 million in profit from $2.06 billion in sales during 2024. The company is now splitting into two smaller entities as its customers seek other chip suppliers.
The Dutch firm halted wafer shipments to China in October, citing nonpayment. It plans to invest $300 million to expand packaging capacity in Malaysia to serve customers outside China.
Nexperia's packaging subsidiary in Dongguan has renamed itself "Nexperia China" and intends to replace European production with Chinese alternatives, including supplies from Zhang's WingSkySemi plant.