Chinese Court Freezes $300 Million Of Nexperia Assets Amid Wingtech Legal Dispute
Overview of the Nexperia and Wingtech Legal Dispute
By Eduardo Baptista
Asset Freeze Details
BEIJING, Aug 31 (Reuters) - A Chinese court has frozen up to 2.14 billion yuan ($300 million) of assets held by Dutch chipmaker Nexperia and its equipment arm, in a case brought by the firm's Chinese owner, electronics group Wingtech Technology.
Background of the Dispute
Wingtech was stripped of control of Nexperia last year by the Dutch authorities. The dispute has strained relations between China and the Netherlands and threatened global supplies of chips used in cars and consumer electronics.
The Chinese court action gives Wingtech fresh leverage in its effort to regain control of Nexperia, though it does not change the company's management or resolve the broader ownership fight.
Nexperia's Response
Measures imposed by the court "do not affect the day-to-day operations, management, or business continuity of Nexperia," Nexperia said in a reaction, noting that the case has not yet been heard on its merits.
Timeline of Events
The dispute began a year ago when the Dutch government intervened at Netherlands-headquartered Nexperia, citing concerns that technology, funds and production assets could be transferred abroad. A Dutch business court later suspended Nexperia's chief executive and put voting rights tied to Wingtech's shareholding under independent management.
China responded with export controls on Nexperia's China operations, disrupting shipments. After talks between Beijing and The Hague, China agreed to allow supplies to resume and the Netherlands suspended its order.
Lingering Issues
But Wingtech has not recovered the voting control it lost, leaving the underlying corporate dispute unresolved.
Legal Proceedings and Court Orders
Wingtech sued Nexperia and three executives in May. It alleged the defendants carried out what Wingtech called discriminatory Dutch restrictions, and sought 8 billion yuan in damages.
The Dongguan Intermediate People's Court ordered the freeze, Wingtech said in a filing. The case has not yet gone to trial.
Scope of the Asset Freeze
The order covers Nexperia's stakes in four China-based businesses, including its semiconductor operations in the Chinese cities of Wuxi and Shanghai as well as its equipment arm's wholly owned Wuxi unit. The measures took effect between August 20 and August 25, and they run until August 2029.
(Reporting by Eduardo Baptista; Additional reporting by Toby Sterling; Editing by Peter Graff and Cynthia Osterman)
