Lawyers representing Dutch chipmaker Nexperia and its Chinese parent company Wingtech presented arguments in the Amsterdam Enterprise Court on Wednesday. The legal battle centers on control of Nexperia and has contributed to a shortage of chips used by automobile manufacturers.
At issue is whether the court will mandate a full investigation into claims of mismanagement under former Nexperia CEO Zhang Xuezheng, who founded Wingtech. The court must also decide if Wingtech's control over Nexperia should be reinstated.
The dispute has hindered Nexperia's operations, preventing cooperation between its European production division and its Chinese packaging and distribution unit.
"Wingtech is doing everything it can to destabilize Nexperia in this already challenging situation," Nexperia's lawyer Jeroen van der Schrieck stated during the hearing. He alleged that Wingtech sought Chinese government export restrictions on Nexperia in October, actions he said harmed the company and its clients.
Wingtech's lawyer Dirk-Jan Duynstee told the court that Zhang had been exploring options to prevent Nexperia from being added to a U.S. blacklist. Duynstee said Zhang was open to considering changes in corporate governance if required.
The conflict began on September 30 when the Dutch government temporarily assumed control of Nexperia, expressing concerns about potential transfers of operations and intellectual property to China. The government later withdrew this intervention.
On October 7, the court issued a preliminary ruling, stating there were "well-founded reasons to doubt" proper management. It suspended Zhang as CEO and ordered Wingtech's shares be placed under the control of a Dutch lawyer.
Wingtech's legal team argued that no evidence was presented showing Nexperia's assets were misappropriated or that such plans existed. They questioned the necessity of the Dutch government's earlier actions.
"Nexperia is a largely non-Dutch group that cannot function without its non-Dutch parent and subsidiary entities," Duynstee asserted in court.
He denied that Zhang had a conflict of interest related to his ownership of a Shanghai factory that supplied wafers to Nexperia, a point cited by the court in its preliminary measures.
Zhang did not attend the hearing. His lawyer referenced Zhang's entrepreneurial history and said Zhang felt betrayed by the actions of the Dutch state and the court.
A lawyer for the Dutch state expressed support for Nexperia's current management team.
The U.S., Dutch, and Chinese governments all implemented and later rescinded measures affecting Nexperia in 2025, citing strategic interests. These actions negatively impacted carmakers.
Nexperia reported a profit of $331 million on sales of $2.06 billion in 2024. The company now risks splitting into two separate entities as its customers seek other chip suppliers.
In October, Nexperia halted wafer shipments to China, citing nonpayment. The company plans to invest $260 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 source production alternatives from China instead of Europe.
The court-appointed lawyer currently holding Nexperia's shares urged a swift ruling. He said that after a discussion on December 18, he believes Nexperia and Wingtech might be postponing settlement talks until their legal standing is more defined.