On the Dash:
- Wingtech says the dispute with Nexperia is disrupting global semiconductor supply chains.
- The conflict has split Nexperia into Dutch- and China-aligned operations.
- Automakers, including Honda, are already warning of production impacts.
Wingtech Technology Chairwoman Ruby Yang is warning that global semiconductor supply chains remain vulnerable unless the Chinese firm regains control of Dutch chipmaker Nexperia, as a prolonged legal dispute continues to fracture the company’s operations.
Wingtech, which acquired Netherlands-based Nexperia in 2019, has been in conflict with Dutch authorities since a court decision suspended founder Zhang Xuezheng as Nexperia’s CEO and placed Wingtech’s shareholder rights under the control of court-appointed trustees. The ruling effectively split Nexperia into two parallel operations: one managed in the Netherlands and another in China, aligned with Wingtech.
In an interview with Bloomberg, Yang argues the intervention has damaged global supply chains, investor confidence, and shareholder value. The dispute has already disrupted wafer shipments between Europe and Asia, where Nexperia conducts final chip assembly. Nexperia’s Chinese operations previously accounted for about half of the company’s pre-crisis production volume.
The fallout has rippled into the automotive sector, for example, Honda warned last week that it may halt production at plants in Japan and China due to chip shortages tied to the dispute. Nexperia supplies components widely used in automotive and consumer electronics applications.
Wingtech denies allegations that it improperly transferred technology to China and contends the supply disruption stems from the Dutch entity’s unilateral halt of wafer shipments to a facility in Guangdong. Yang also claims actions taken by Dutch authorities violate a 2001 bilateral investment treaty with China. The company has filed a notice of dispute and could seek international arbitration within six months, potentially pursuing damages tied to Nexperia’s estimated $8 billion valuation.
Nexperia has rejected claims that its interim management acted for personal gain and disputes Wingtech’s account of events. While political tensions between China and the Netherlands have eased, the corporate standoff persists. Both sides have resumed talks, though no resolution has been announced.
