A court in Dongguan has frozen up to 2.14 billion yuan (about $300 million) in assets belonging to Nexperia and its equipment division. The measure was ordered at the request of Wingtech, the Chinese owner that lost control of the Nijmegen-based chipmaker last year.
The freeze covers Nexperia’s stakes in four Chinese companies, including its semiconductor operations in Wuxi and Shanghai. It also includes the equipment division’s wholly owned subsidiary in Wuxi. The measures took effect between August 20 and 25 and will remain in place until August 2029.
The case has not yet been heard in court. Wingtech announced the freeze itself in a stock exchange filing.
On paper, little has changed. Nexperia’s board of directors remains unchanged, and the underlying ownership dispute remains unresolved. However, Wingtech does gain an additional lever of pressure in its attempt to regain control.
From Dutch intervention to Chinese courtroom
The conflict began last year when the Dutch government intervened at Nexperia, fearing that technology, money, and production resources would be transferred abroad. The Enterprise Chamber subsequently suspended CEO Zhang Xuezheng and placed Wingtech’s voting rights under independent management.
Beijing responded with export restrictions on Nexperia’s Chinese operations. Following talks between Beijing and The Hague, China resumed allowing shipments, and the Netherlands suspended its measure. However, Wingtech did not regain its voting rights.
In May, Wingtech and a subsidiary filed a lawsuit in Dongguan. They sued Nexperia, its equipment division, the parent company, and three directors, demanding eight billion yuan in damages. According to Wingtech, the defendants enforced or assisted in enforcing discriminatory Dutch restrictions. The company is invoking China’s Anti-Foreign Sanctions Law in its case.
Tip: Nexperia crisis: Why did the Netherlands intervene with the chip manufacturer?