On Monday, August 31st, a court in Dongguan, China, froze a portion of the equity holdings of Nexperia B.V., a Dutch company and its equipment subsidiary in China, with the amount involved reaching up to approximately 2.14 billion Chinese yuan (about 300 million US dollars). The lawsuit was brought by Wingtech, the Chinese parent company of Nexperia.
The dispute originated from restrictions imposed by the Dutch government a year ago on Wingtech and its founder’s control over Nexperia, affecting Sino-Dutch relations and the chip supply chain for automobiles and consumer electronics.
In May of this year, Wingtech filed a lawsuit in the Intermediate People’s Court of Dongguan, Guangdong Province, against Nexperia, its Dutch subsidiary Itec B.V., and several members of Nexperia’s management team. Wingtech accused the defendants of implementing what they called discriminatory Dutch restrictive measures and is seeking 8 billion Chinese yuan in damages.
On Monday evening, Wingtech released a statement saying that on August 28, the Dongguan Intermediate People’s Court issued a civil ruling ordering the freezing of a portion of Nexperia and Itec’s holdings. The related case has not yet proceeded to substantive trial.
According to Wingtech’s announcement, the court’s measures involved the equity of four Chinese enterprises, including Nexperia’s semiconductor businesses in Wuxi and Shanghai, as well as a wholly-owned subsidiary of its equipment division in Wuxi. These measures are said to have taken effect in late August and will continue until August 2029.
Wingtech stated that as of the announcement date, the case has not been heard in court. The company mentioned that due to the uncertain outcome of the litigation, the impact on the company’s financial condition, current profits, and future profits cannot be determined at the moment.
In response to the developments in the case, Nexperia stated in a statement to Dajiyuan that the equity preservation measures taken by the Chinese court will not affect the daily operations, management, or business continuity of Nexperia and its subsidiaries.
Nexperia stated that the measures only involve the equity of certain Chinese entities. The company clarified that these entities have been operating outside of Nexperia’s governance structure since October 2025, with Nexperia having no control over them, and these entities are not involved in Nexperia’s current operations.
The company further mentioned that the related legal proceedings have not reached the substantive trial stage yet, and the asset preservation is a procedural measure in Chinese civil litigation and does not represent the court’s final ruling on Wingtech’s claims. Nexperia stated that they are currently reviewing the court’s orders and available legal options.
Recently, Nexperia disclosed its financial performance for the second quarter of 2026, showing strong growth in revenue, profitability, and cash flow. The company is also progressing its recovery and expansion plans for overseas factories outside of China.
Nexperia achieved a revenue of 3.556 billion US dollars globally in the second quarter, representing an 18.4% increase from the first quarter. Additionally, the company saw a double increase in net profits and operating cash flow from its business outside of China.
The dispute began in September 2025 when the Dutch government took measures against Nexperia to protect key technologies and supply security, restricting Wingtech’s control over the company. A commercial court in the Netherlands subsequently suspended Nexperia’s CEO, Zhang Xuezheng, and placed the voting rights related to Wingtech’s shareholding under independent management.
Zhang Xuezheng has been serving as Nexperia’s CEO since 2020 and is also the founder and CEO of Wingtech. Company filings show that Wingtech owns the entity in the Netherlands that controls part of its subsidiaries in China.
The Dutch government accused Zhang Xuezheng of improperly promoting the transfer of Nexperia’s business and intellectual property from Europe to China, fearing that it could jeopardize Nexperia’s crucial technology, manufacturing, and research and development capabilities in the Netherlands and Europe.
After the dispute erupted, Wingtech issued an internal memo to Nexperia China employees instructing them to disregard directives from the Dutch headquarters and operate in accordance with the arrangements made by the Chinese entities. The memo stated that Nexperia China would function as an independently operated Chinese enterprise making its own decisions.
Following the Dutch government’s intervention in Nexperia, Beijing imposed export controls on Nexperia’s relevant operations in China, leading to disruptions in some shipments. After negotiations between Beijing and The Hague, China agreed to resume supplies, and the Netherlands temporarily lifted related control measures.
However, the dispute over the company’s control between Nexperia and Wingtech continues to unfold.