TLDRs:
- Dutch court removes Nexperia CEO Zhang Xuezheng, fueling legal battles over ownership.
- Wingtech vows to pursue all legal avenues to regain control of Nexperia.
- Chip supply risks rise amid Nexperia governance disputes affecting global automakers.
- European semiconductor reshoring plans gain urgency as Nexperia crisis unfolds.
The Dutch judiciary has removed Zhang Xuezheng from his role as CEO of Nexperia, the Dutch-based semiconductor manufacturer.
The court’s ruling also revoked the shareholder rights of Wingtech Technology, Nexperia’s Chinese parent company, leaving the management and voting powers in the hands of a court-appointed administrator.
Nexperia confirmed that Zhang remains suspended and is not exercising any CEO responsibilities. Wingtech, which is listed on the Shanghai stock exchange, criticized the decision and stated that the Dutch government’s recent revocation of an executive order is insufficient to restore the company’s control.
Wingtech Promises Legal Retaliation
Wingtech has pledged to explore all available legal avenues to reclaim authority over Nexperia. Legal analysts indicate that the dispute could drag on for years, possibly exceeding two years if multiple appeals are filed or governance structures are altered.
The company may even take the case to the Dutch Supreme Court, which would focus primarily on procedural questions rather than the substance of the dispute.
The ownership battle highlights the growing tension between Nexperia’s Dutch and Chinese teams and reflects broader concerns about international corporate governance in critical industries.
Global Chip Supply Under Pressure
The governance crisis at Nexperia has raised alarms among global automakers, as the company controls roughly 40% of the global market for basic discrete chips such as transistors and diodes. These components are vital to vehicle electronic control units, with major clients including Volkswagen, Toyota, BMW, and Mercedes-Benz.
Nexperia generated $2.06 billion in revenue in 2024, with approximately 60% of sales going to carmakers. Analysts warn that a prolonged legal dispute could maintain the administrator’s control over voting rights while Zhang remains suspended, forcing automakers to consider alternative suppliers.
Volkswagen has already issued warnings about potential production halts, a risk amplified by ongoing Chinese export restrictions.
EU Chips Act 2.0 Gains Momentum
The situation at Nexperia has also intensified discussions around European semiconductor independence. The European Commission plans to propose the Chips Act 2.0 in the first quarter of 2026, aiming to boost domestic chip production and reduce reliance on foreign suppliers.
Discrete component manufacturers and contract chip foundries may qualify for Integrated Production Facility (IPF) or Open EU Foundry (OEF) status, granting priority access to pilot lines and streamlined state aid.
These measures are expected to encourage European automotive OEMs and Tier 1 suppliers to diversify their supply chains, favoring locally qualified production capacity to mitigate disruptions like the Nexperia crisis.
Long-Term Implications
The Nexperia ownership dispute underscores the strategic importance of semiconductor supply chains and corporate governance in a geopolitically sensitive industry.
With Wingtech committed to pursuing legal remedies and Dutch authorities maintaining administrative oversight, the resolution could take years, with significant implications for global automotive production.
As the legal battle unfolds, the incident also reinforces the urgency for Europe to secure semiconductor autonomy through legislation, investments, and reshoring initiatives, aiming to safeguard critical technology sectors from international disputes.
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