The Chinese government has urged its counterpart in the Netherlands to take the initiative to resolve the dispute surrounding Nexperia after a Dutch court ordered an investigation into the auto chipmaker’s mismanagement by China’s Wingtech Technology.
“The root cause of the Nexperia issue is the improper administrative intervention of the Dutch side in the operations of businesses,” Lin Jian, a spokesperson of the Chinese Foreign Ministry, said Thursday.
“The Dutch side needs to create enabling conditions for companies to resolve internal disputes as soon as possible and for keeping global semiconductor supply chains stable and unimpeded,” he said. “China will continue supporting Chinese companies in safeguarding their legitimate and lawful rights and interests.”
The comments came after the Enterprise Chamber of the Amsterdam Court of Appeal decided to investigate Nexperia’s policy and affairs and maintain the earlier suspension of Chief Executive Zhang Xuezheng, who founded Wingtech in 2006.
The Enterprise Chamber said it found that a conflict of interest had been handled without due care in Nexperia. It said there are indications that Zhang changed Nexperia’s strategy without internal consultation under the threat of upcoming sanctions, while agreements with the Netherlands Ministry of Economic Affairs were no longer adhered to. It added that the powers of European managers were restricted and that their dismissal had been announced.
It said the investigation may take more than six months to complete. The ruling was made after a hearing on January 14.
On Thursday, China Chengxin International Credit Rating said it had downgraded Wingtech’s long-term credit rating from AA- to A with a negative outlook, citing the significant operational and financial impact from the loss of control over Nexperia.
Wingtech, in a statement on Wednesday, expressed profound disappointment and strong dissatisfaction with this ruling.
“The Enterprise Chamber has not revoked its previous erroneous decision, failed to lift the interim measures imposed on Nexperia, nor restored Wingtech’s legitimate controlling rights as a shareholder of Nexperia,” said Wingtech.
The company said the so-called “investigation procedure” would drag the case into a lengthy second phase and described the decision as self-contradictory and logically flawed. It argued that the current management won’t be able to conduct any effective probe. Instead, it urged the Enterprise Chamber to conduct a full and fair investigation into the current interim management of Nexperia.
Nexperia’s executives to stay
The dispute emerged in late September 2025 after Washington tightened its sanctions rules and the Dutch government took temporary control of Nexperia under its Goods Availability Act.
In early October, a Dutch court suspended Zhang at Nexperia. Nexperia halted wafer shipments to Nexperia China, while Wingtech restricted exports of Nexperia China’s products.
China later resumed shipments and pursued legal talks, easing tensions. The Netherlands ended its intervention in November. Still, Zhang cannot return to the board and regain control of Nexperia.
Nexperia said in a statement on Wednesday that with the suspension of Zhang in place, its leadership will continue to consist of Stefan Tilger as interim Chief Executive, Achim Kempe as Chief Operating Officer and Ruben Lichtenberg as Chief Legal Officer.
“Despite the challenging situation, our underlying business continues to be healthy and resilient, and we remain committed to being a strong, reliable partner for all our stakeholders, including customers,” it said. “The current situation now primarily asks for Nexperia to further stabilize its supply chain and ensure meeting customer demand worldwide.”
Some Chinese commentators argued that the Dutch government is unlikely to ease its stance in the Nexperia dispute, given that its new cabinet is dominated by hardline voices on China.
“This month, the Netherlands’ youngest prime minister in history, 38-year-old Rob Jetten, finalized his new cabinet,” says Shi Jiangyue, a Shanxi-based columnist. “In the cabinet, key positions are almost entirely held by politicians known for their hawkish stance toward China.”
The writer cites several examples:
- Trade Minister Sjoerd Sjoerdsma, sanctioned by China in 2021 over allegations related to Xinjiang, could push for tighter high-tech export controls.
- Infrastructure Minister Vincent Karremans, previously involved in the Nexperia intervention, now oversees critical infrastructure screening, potentially increasing scrutiny of Chinese investments.
- Foreign Minister Tom Berendsen and other senior officials have repeatedly warned about a “China threat” and risks of dependence on China, signaling a tougher overall policy stance.
Shi also argues that these hawkish Dutch officials are effectively aligning with Washington’s strategic agenda. He says the United States ultimately seeks to disrupt Nexperia’s chip supply chain to create new opportunities for American semiconductor makers such as Texas Instruments and ON Semiconductor.
Decoupling has started
Wingtech said on January 31 that it expected a 2025 net loss attributable to shareholders of 9 billion to 13.5 billion yuan (US$1.25 billion to US$1.88 billion). Excluding non-recurring items, the projected loss is 200 million to 300 million yuan.
Some analysts said now the only remaining path for Wingtech to regain control of Nexperia would be to pursue international arbitration.
Wingtech said it had initiated multiple legal proceedings in the Netherlands on October 15 last year and submitted a formal notice of dispute, triggering a six-month consultation period. The company’s maximum claim could reach US$8 billion.
If no resolution is reached before April 15, 2026, the case will automatically proceed to international arbitration, according to the company.
As the international arbitration process may take several years to complete, Nexperia China has already begun restructuring its respective supply chains.
Last month, the company said its Dongguan-based site has become its global headquarters, overseeing operations, finance, supply chains and human resources across all subsidiaries, including plants in Hamburg, Manchester and Seremban, Malaysia.
The company said it has established independent data security zones in Germany and the United Kingdom to ensure that automotive-grade chip data does not cross local borders. It said that, starting this year, it will use 100% domestic wafers to produce insulated-gate bipolar transistors (IGBTs) and metal-oxide-semiconductor field-effect transistors (MOSFETs), key power semiconductor switches used in electric vehicles.
Read: China escalates Nexperia dispute as Malaysia shift looms
Follow Jeff Pao on Twitter at @jeffpao3
