The Nexperia dispute: Chinese parent company sues for €1 billion over Dutch intervention
Chinese technology company Wingtech has filed a lawsuit in China against chipmaker Nexperia, its Nijmegen-based subsidiary, demanding 1 billion euros (8 billion yuan) in damages. The case escalates a broader international dispute triggered by Dutch government intervention last year, which has since split control of the company between Europe and China and disrupted global supply chains.
According to Reuters, Wingtech argues that contractual agreements were violated and claims it has suffered billions in losses as a direct result of the Dutch government’s actions.
At the end of September last year, the Dutch government intervened, citing concerns that sensitive technology could be transferred to China. One day later, the Chinese chief executive of Nexperia, Zhang Xuezheng, was suspended, and the company’s shares were placed under external control. The measures effectively removed Wingtech from operational control.
The move triggered strong objections from both Wingtech and the Chinese government. In response, China imposed export restrictions, preventing Chinese factories from supplying chips to customers outside the country. The restrictions had immediate global consequences, particularly in the automotive industry, which depends heavily on semiconductor components.
Since those actions, the Chinese and European divisions of Nexperia have remained functionally separated. Communication between the two sides has been described as difficult and limited.
