Wingtech sues Nexperia for $1.2b, seeks control

Shanghai-listed Wingtech Technology said in a May 23 filing that a court in Dongguan accepted its lawsuit against Dutch chipmaker Nexperia and related parties, with claims of at least 8 billion yuan (US$1.2 billion) and a request to restore its control over the unit.

Wingtech said Dutch government measures and court rulings that limited its control over Nexperia amounted to discriminatory foreign sanctions under China’s Anti-Foreign Sanctions Law.

It also asked the court to halt related actions, including Dutch legal proceedings and a ministerial order issued in September 2025.

Wingtech said that if the defendants do not comply, it will seek a free transfer of Nexperia and related units, after the Dutch government took control of Nexperia in late 2025 under the Goods Availability Act to protect European access to chips used in cars and consumer electronics.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

US export-control changes and governance concerns drove the Dutch intervention

On September 29, 2025, the US widened export controls to cover entities at least 50%-owned by a company on the BIS Entity List, the US Commerce Department’s trade blacklist. That put Nexperia at risk because its parent, Wingtech, was on the list 1.
On September 30, 2025, the Netherlands used the Goods Availability Act for the first time, citing “serious governance shortcomings” that threatened Dutch and European economic security 2.
A Dutch court found reason to question Nexperia’s management. The government said the suspended chief executive officer (CEO) took part in an improper transfer of product assets, funds, technology, and know-how to a foreign entity 3.
The move also followed reports that Wingtech’s owner planned to shift more front-end chip production, the early stage of semiconductor manufacturing, to China. That raised fears of a knowledge leak 4.

The legal fight has pulled in the low-end chip supply chain

The case became a pressure point in the wider supply chain strain facing carmakers 1.
Nexperia does not make leading-edge chips, yet it holds about 40% of the market for basic automotive transistors and diodes 1.
After the Dutch intervention, China blocked exports from Nexperia’s Chinese unit and its subcontractors, the third-party manufacturers it uses. That squeezed shipments of finished parts and sub-assemblies made in China, where much of Nexperia’s output is processed 1.
Car production came under threat. Volkswagen warned of imminent stoppages, and Japanese automakers were told deliveries for essential electronic control unit components could not be guaranteed 1.