Wingtech Seeks $1.2 Billion in Damages in Lawsuit Against Nexperia
Overview of the Wingtech vs. Nexperia Legal Dispute
Background 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.
Ownership and Previous Conflict
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.
Court Proceedings and Jurisdiction
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.
Timeline and Escalation of the Dispute
Initial Dispute and Government Intervention
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
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.
International Arbitration Efforts
In January this year, Wingtech sought international arbitration in pursuit of damages of up to $8 billion.
Legal Grounds and Claims
Application of 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
Exchange Rate Reference
($1 = 6.7947 Chinese yuan renminbi)
Reporting Credits
(Reporting by Xiuhao Chen, Yukun Zhang and Eduardo Baptista; Editing by Susan Fenton)
