The Chinese technology company Wingtech is preparing an international arbitration case against the Dutch government due to its intervention at chip manufacturer Nexperia. According to Wingtech, The Hague’s intervention has led to billions in losses, operational disruptions, and issues surrounding the group’s financial reporting.
This is reported by the Dutch Financieele Dagblad based on a press release from Wingtech. The case revolves around the events of late September 2025, when the Ministry of Economic Affairs invoked an emergency law from 1952 to limit the influence of the Chinese parent company on Nexperia. Shortly thereafter, the Enterprise Chamber also intervened, effectively causing the Chinese management to lose control of the chip manufacturer. At the time, the Netherlands argued that the measures were necessary to prevent sensitive technology and production capacity from being transferred to China.
Wingtech now claims that the Dutch measures have caused more than $8 billion in damages to the company and its investors. Additionally, the intervention is said to have impacted parts of the international semiconductor supply chain. Reuters had previously reported that the group was considering arbitration proceedings.
Experts consider full compensation unlikely
Legal experts question the feasibility of the claim, reports the FD. Attorney Onno Hennis says that, based on the available information, it is unlikely that Wingtech will be awarded the full amount of damages claimed. According to him, the bar for claims involving direct or indirect expropriation is high, and it is difficult to demonstrate a direct link between the Dutch government’s actions and the financial damage.
Another factor is that the Enterprise Chamber imposed additional measures almost immediately after the government intervention. According to Hennis, this allows for the argument that any damages stem more from that judicial intervention than from the government’s decision itself.
In addition to the legal battle, Wingtech is now facing financial difficulties. The group reported last week a net loss of over 1 billion euros for 2025. Revenue fell by 58 percent during the same period to approximately 3.7 billion euros.
Wingtech’s auditor has also refused to approve the annual figures for the time being. According to the company, access to systems and information from Nexperia’s subsidiaries outside China has been unavailable since the end of September 2025, meaning insufficient audit evidence was available for the audit.
Due to the lack of sufficient control over Nexperia’s foreign subsidiaries, Wingtech could no longer consolidate those operations in its financial statements in accordance with accounting standards. According to the company, this resulted in a significant one-time accounting loss. Wingtech emphasizes that, in its view, this says nothing about its operational performance or its legal claims as a shareholder.