Chinese court freezes over $300m of Nexperia assets in Wingtech dispute

The Dongguan Intermediate People's Court ordered the freeze after an asset-preservation request from Wingtech and its subsidiary, according to the filing. The order covers Nexperia's 100% stakes in Nexperia Semiconductor China, Nexperia Semiconductor Wuxi and Nexperia Semiconductor Shanghai, plus 99% of Nexperia Semiconductor Technology Shanghai. It also froze the entire stake held by Nexperia's equipment unit in its Wuxi subsidiary.

Wingtech is seeking 8 billion yuan ($1.12 billion) in damages from Nexperia, its holding and equipment companies and three executives. The lawsuit, filed in May, alleges the defendants carried out or helped enforce what Wingtech calls "discriminatory restrictive measures" imposed by the Netherlands. The case has not gone to trial.

The freeze covers about a quarter of the damages Wingtech seeks. Reuters reported that the court action gives Wingtech more room to press its claim to regain control, though it does not change the company's management or resolve the broader ownership fight.

Nexperia said the measures "do not affect the day-to-day operations, management, or business continuity of Nexperia," adding that the case has not been heard on its merits. Nexperia makes chips widely used in automobiles, consumer electronics and industrial equipment.

The dispute behind the order

The freeze is the latest step in a fight that began after the Dutch government took control of Nexperia in 2025. The Ministry of Economic Affairs invoked the Goods Availability Act on 30 September 2025 and made the decision public on 12 October, Data Center Dynamics reported. The ministry cited "serious governance shortcomings" that it said posed a threat to the continuity and safeguarding of technological knowledge and capabilities on Dutch and European soil.

The 1952 law had never been used. It lets the state block or reverse management decisions for a year without taking ownership. Vincent Karremans, the economy minister, told broadcaster NOS he had received "serious and urgent signals that the company has major shortcomings that could jeopardise security of supply."

Court papers released after the takeover showed US officials warned the Netherlands in June 2025 that Nexperia might not be able to export to the US if Zhang remained in post, the Guardian reported. Wingtech, which bought Nexperia from Philips, called the Dutch move "excessive interference driven by geopolitical bias." The Dutch ministry denied US involvement, calling the timing "purely coincidental," the Times of India reported.

Nexperia's European directors went to court on 1 October 2025, and a judge suspended Zhang Xuezheng with immediate effect, IO+ reported. The Enterprise Chamber suspended him on 6 October, the same outlet said. By the time the takeover was made public, Zhang had already been suspended, the Guardian reported.

Supply fallout and next steps

China responded with export controls on Nexperia's China operations, disrupting shipments, Reuters reported. The South China Morning Post reported that Nexperia's main China factory cut production, with one worker saying about one-third of the machines on his production floor had been idle for about a week because of a shortage of wafers normally supplied by Nexperia's fabs in Germany and the UK.

Nexperia China told employees they no longer needed to follow instructions from Dutch headquarters, IO+ reported. Wingtech warned that "a Nexperia without its Chinese divisions is doomed," saying the company would lose most of its chip production.

Reuters reported that after talks between Beijing and The Hague, China agreed to allow supplies to resume and the Netherlands suspended its order. Wingtech has not recovered the voting control it lost, leaving the underlying corporate dispute unresolved.

The equity freezes run until August 2029. Wingtech said it would "exhaust all legal means" to restore full control of Nexperia and safeguard investors' interests.