Court hears case today on Nexperia after Chinese CEO ousted over alleged risky deals
The Dutch Enterprise Chamber is holding a hearing today at 10:00 a.m. to decide whether to launch a formal investigation into Nexperia B.V., the semiconductor company, following provisional measures imposed last October.
Today’s hearing will focus solely on whether there is sufficient reason to order a formal investigation. If approved, the chamber may maintain or adjust the previous measures. If no investigation is ordered, the earlier measures will end. The session will not address allegations of mismanagement; such questions can only arise if an investigation is authorized and evidence indicates wrongdoing.
On October 13, 2025, the chamber suspended Zhang Xuezheng, Nexperia’s Chinese CEO, citing reckless leadership and inadequate preparation for anticipated U.S. trade restrictions.
At the time, the court also appointed a temporary director and placed nearly all of the sole shareholder's shares under court management. The chamber found “grounds for doubt about proper management or the correct course of affairs at Nexperia B.V. c.s.”
The October ruling highlighted multiple management concerns. The court found that Zhang failed to act after Nexperia anticipated for months that it would be added to the U.S. Entity List, triggering severe trade restrictions due to its Chinese ownership. On September 25, 2025, three senior financial executives in the Dutch office were removed without explanation, leaving unqualified employees in charge of banking operations, a decision the court described as “reckless.”
The court also raised concerns over wafer purchases from Nexperia’s financially troubled Chinese sister company, WSS. Zhang oversaw transactions totaling 200 million U.S. dollars—far exceeding the roughly 75 million dollars actually needed—with some excess wafers reportedly destroyed. The court cited these purchases as a conflict of interest.
Three European Nexperia executives sought assistance from the Dutch Ministry of Economic Affairs as U.S. sanctions approached. On October 7, the Enterprise Chamber temporarily replaced Zhang with a non-Chinese executive and transferred the company’s shares to an independent party.
At today's hearing, the attorneys for the parties and other stakeholders will present their explanations, and the parties themselves will have the opportunity to speak. The chamber may also explore whether the parties can reach a settlement before allowing further responses from the lawyers.
The hearing is to take place at the Paleis van Justitie, IJdok 20, Amsterdam. The session is open to the public, but seating will be limited due to anticipated high attendance. A video room at the courthouse is available, though space is also restricted. The hearing can also be followed via livestream. Journalists do not need to register in advance, but space cannot be guaranteed. The court has stated it will make every effort to accommodate the press today.
