A Chinese Court Freezes Nexperia’s Stakes in Four Subsidiaries
A Chinese court has frozen Nexperia’s stakes in four of its own subsidiaries, worth approximately 2.14 billion yuan, with the order remaining in place until August 2029. (Reuters reported the news.)
The assets include Nexperia’s holdings in semiconductor operations in Wuxi and Shanghai, as well as a wholly owned subsidiary in Wuxi of its equipment business. Together, these frozen shareholdings are worth roughly $300 million and will remain immobilized for up to three years while the dispute proceeds through the Chinese courts.
This freeze is a preservation order, not a judgment on the underlying dispute. It prevents Nexperia from selling or restructuring the affected Chinese subsidiaries during this period.
The case was initiated by Wingtech, Nexperia’s Chinese owner, who sued the company and three of its executives in May. Wingtech alleges that the Dutch government’s restrictions on Nexperia are discriminatory and seeks 8 billion yuan in damages.
Nexperia states that the order has no impact on its daily operations. The company asserts that the measures do not affect operations, management, or business continuity, and there is no indication that production at the affected facilities has been suspended.
The dispute began in The Hague, where the Dutch government intervened in Nexperia over concerns regarding the potential relocation of technology, funds, and production assets out of the country.
A Dutch court subsequently suspended Nexperia’s CEO and placed Wingtech’s voting rights under independent management.
While Nexperia may not be a familiar name outside the semiconductor industry, its products are widely used. The company manufactures discrete semiconductors and basic logic chips in massive volumes, supplying components for cars, appliances, and industrial equipment.
China responded to the Dutch intervention through both supply chain disruptions and legal channels. Beijing imposed export controls that hindered shipments of Nexperia components, impacting European manufacturers that rely on these parts.
The two governments later reached an understanding aimed at restoring normal operations, but the agreement did not resolve the underlying dispute. Litigation continues in both jurisdictions.
We previously covered Wingtech’s Chinese lawsuit when it was filed in May. The significant development now is the Chinese court’s decision to preserve assets before the case has reached a hearing on the merits. This move aligns with a broader shift in European policy regarding strategic technology.