Court upholds suspension and orders six-month probe into Nexperia

China-linked Wingtech has lost its court fight to take back control of Nexperia, the Dutch semiconductor company caught in a long and messy power struggle. The Amsterdam appeals court rejected Wingtech’s request and kept earlier emergency measures in place, extending a crisis that has already disrupted chip flows to parts of Europe’s car industry. The judges confirmed that Nexperia’s Chinese chief executive, Zhang Xuezheng, will stay suspended. Control remains with EU-based directors while a formal investigation begins. In a press release, the court said it “finds that there are valid reasons to doubt the sound policy and conduct of business at Nexperia and orders an investigation.” The decision means outside investigators will now review how Nexperia has been run. Court upholds suspension and orders six-month probe into Nexperia The Dutch government stepped in last September and temporarily seized control of Nexperia, which is based in Nijmegen. Officials said Zhang’s actions created a threat to Europe’s security of supply. His shares were transferred to a trust. He kept the economic benefits but lost voting control. On Wednesday, the Enterprise Chamber said it found “indications of negligent conduct involving a conflict of interest.” The court said there were signs that a director, facing possible sanctions, changed the company’s strategy without consulting other board members. It said agreements with the Ministry of Economic Affairs were not followed, the authority of European officials was reduced, and their resignations were announced. The court will appoint two investigators who will work for about six months. The investigation will also review the conduct of the Dutch management of Nexperia, which was one of Wingtech’s main requests. Since the intervention, the European and Chinese parts of Nexperia have stopped working together. That breakdown caused chip shortages that affected the car sector. The Hamburg plant halted shipments of silicon wafers to China for final assembly, stating it was not being paid. Customers responded by buying wafers from the European side and sending them to China themselves for assembly to bypass the internal conflict. Lawyers trade accusations as US sanctions tighten pressure During a January hearing, lawyers for Nexperia alleged that Zhang was transferring equipment to China and using company assets to support Wing Systems, another business he owns. They argued that Wingtech was “doing everything it can to destabilise” the company. They also claimed it had “pressured virtually all of Nexperia’s business partners not to do business with it” and had urged the Chinese government to impose export restrictions that would harm Nexperia, referencing the Dutch economy minister’s defense statement. Zhang denied those claims in court, saying European executives mismanaged the company. He stated that he strengthened production in China to build a resilient supply chain against geopolitical shocks. The dispute also intersects with US trade policy. In late 2024, the United States placed Wingtech on its “entity” list. That required US companies to obtain licenses before trading with it. In September, the US Commerce Department said the restrictions would extend to Nexperia as a subsidiary. Court documents showed that US officials warned the Dutch government that removing Zhang was necessary to avoid the listing. After the ruling, Nexperia said its underlying business remains healthy and resilient and that it is focused on stabilising its supply chain and meeting customer demand worldwide. Wingtech said it regretted the decision but remained confident that a full and impartial inquiry would show its actions were appropriate. It added that the ruling prolongs significant uncertainty for a business already under strain since October 2025 and said it had not been presented with evidence justifying what it described as extraordinary measures. The smartest crypto minds already read our newsletter. Want in? Join them .