Wingtech seeks $1.2 billion damages in new suit against Nexperia
Wingtech's Legal Battle with Nexperia: Background and Developments
Overview of the Lawsuit
BEIJING, May 22 (Reuters) - China's Wingtech Technology has filed a lawsuit with a subsidiary against Nexperia B.V. and five other entities, saying its control over the Dutch chipmaker remained restricted, as it provisionally seeks 8 billion yuan ($1.18 billion) in compensation for economic losses.
History of the Wingtech-Nexperia Dispute
Escalation and Previous Agreements
Wingtech owns Nexperia and its latest lawsuit could re-escalate a conflict that has been largely frozen since late last year, when China agreed to pare back export controls of Nexperia chips in exchange for the Netherlands suspending its decision to seize control of Nexperia from Wingtech.
A court in the southern Chinese province of Guangdong has accepted the latest case, the company said in a filing to the Shanghai Stock Exchange on Friday.
Nexperia's Response
"Nexperia has taken note of Wingtech’s announcement and understands that the relevant court has not opened the case for trial," said Nexperia, in response.
"We regret that Wingtech appears not to be interested at all in reaching a solution that would be beneficial to all stakeholders, including Wingtech's shareholders, and continue to urge Wingtech to engage in an open dialogue," added Nexperia.
Background on the Dutch Government's Actions
The dispute with Nexperia broke out last September when the Dutch government seized control of the Netherlands-based company, citing fears the firm was transferring operations and intellectual property to China. The Dutch government later revoked the move.
Financial Impact on Wingtech
Recent Financial Results
Wingtech reported late last month that its net loss widened to 8.7 billion yuan in 2025 from a 2.8-billion-yuan loss a year earlier, as the dispute over control of Nexperia weighed on the company's performance.
Previous Legal Actions
In January this year, Wingtech sought international arbitration in pursuit of damages of up to $8 billion.
Legal Basis for the Lawsuit
China's Anti-Foreign Sanctions Law
Wingtech's latest lawsuit said that under China's anti-foreign sanctions law, which Beijing has recently enforced more strictly, Wingtech Technology and Yucheng Holdings are entitled to demand compensation for losses.
Allegations Against Defendants
"The defendants' unlawful implementation of, or assistance in implementing, the discriminatory restrictive measures of the Dutch side has caused the plaintiffs irreparable and enormous losses," Wingtech said in Friday's filing.
Additional Information
($1 = 6.7947 Chinese yuan renminbi)
(Reporting by Xiuhao Chen, Yukun Zhang and Eduardo Baptista; Additional reporting by Toby Sterling;Editing by Susan Fenton/Sudip Kar-Gupta)
