Netherlands to probe Chinese language-owned chipmaker Nexperia

The courtroom upheld an October choice to droop its Chinese language CEO Zhang Xuezheng.

Nexperia’s Chinese language proprietor Wingtech was unable to sway the Amsterdam Courtroom of Appeals and regain management of the Dutch chipmaker that performs an important function within the world automotive trade.

In an translated press launch printed yesterday (11 February), the courtroom’s enterprise chamber as an alternative ordered an investigation into Nexperia, citing “well-founded causes to doubt a correct coverage and correct course of affairs” on the firm.

The courtroom additionally upheld an October choice to droop its Chinese language CEO Zhang Xuezheng and hand management off to EU-based administrators. Xuezheng shares had been handed over to a belief, however he nonetheless retained financial advantages.

Nexperia’s seizure started on 30 September final 12 months, when the Dutch authorities invoked the hardly ever used Items Availability Act, pointing to “severe governance shortcomings” on the firm.

The Netherlands believed that alleged mismanagement at Nexperia posed a “risk” to Europe’s semiconductor capabilities.

Responding to the seizure, China halted Nexperia chip exports in early October, which resulted in a disruption affecting almost three-quarters of the corporate’s output. On 9 November, nevertheless, the export ban was lifted.

In a press release issued that month, the Dutch authorities stated that considerations round Nexperia stemmed from the now-suspended CEO who took half within the “improper switch of product belongings, funds, expertise and information to a international entity”.

Nexperia’s Chinese language and European arms have stopped collaborating for the reason that seizure, and regardless of indicators of easing tensions in November, points between the events nonetheless persist.

The Dutch firm stopped transport silicon wafers to its Chinese language subsidiary final 12 months claiming the native unit refused to make funds. In response to the Monetary Instances, clients are actually buying wafers from the European unit to the Chinese language unit for meeting themselves. Nexperia provides its chips to the likes of Volvo, JLR and Volkswagen.

In its order following the general public listening to of 14 January, the Dutch courtroom discovered “indications that careless motion was taken with a conflicting curiosity” at Nexperia.

It stated that Xuezheng modified firm methods with out consulting different board members. In a listening to final month, Nexperia’s attorneys claimed that Zhang was shifting tools to China and used its belongings for Wing Programs, a unique firm he owned.

Responding to yesterday’s orders, Nexperia stated it welcomed the ruling and commits to totally complying with the investigation.

“Regardless of the difficult scenario, our underlying enterprise continues to be wholesome and resilient and we stay dedicated to being a robust, dependable associate for all our stakeholders together with clients,” it stated.

The Dutch-headquartered Nexperia – an offshoot of NXP – was acquired by China’s contract manufacturing large Wingtech Expertise in 2018.

Final 12 months’s takeover has brought about a extreme pressure within the relationship between mother or father firm Wingtech and Nexperia, who’ve accused one another of disrupting operations and destabilising enterprise.

In 2024, the US authorities added Wingtech to its Entity Record – a designation given to corporations that might pose a danger to the nation’s nationwide safety. In 2022, the UK authorities ordered Wingtech-owned Nexperia to undo its acquisition of the Newport Wafer Fab, citing a nationwide safety danger.

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