Court Mandates Probe into Nexperia's Governance
The Enterprise Chamber of the Amsterdam Court of Appeal has ordered a formal investigation into the operations of Dutch chipmaker Nexperia B.V., a subsidiary of China's Wingtech Technology. The court's ruling, issued on Wednesday, February 11, 2026, also upheld the suspension of Nexperia's Chinese CEO, Zhang Xuezheng, who is also the founder of its parent company, Wingtech.
The court found 'valid reasons to doubt Nexperia's policy and business conduct,' citing allegations of mismanagement and 'reckless leadership.' The investigation is expected to last up to six months.
Reasons for Suspension and Investigation
The decision to investigate and maintain the CEO's suspension stems from several concerns, including:
- 'Mismanagement' and 'negligent conduct'
- A 'conflict of interest' handled without due care, specifically involving Zhang Xuezheng's personal ownership of a factory in Shanghai that conducted business with Nexperia
- Indications that company strategy was altered without internal consultation amidst looming sanctions
- Non-compliance with agreements made with the Dutch Ministry of Economic Affairs
- Restrictions placed on European managers' authority and announcements of their dismissal
- Concerns regarding the potential transfer of technological capabilities vital to Dutch and European economic security
Zhang Xuezheng was initially suspended in October 2025 following claims of mismanagement and poor preparation for anticipated U.S. trade restrictions. The court's decision ensures that control of the company remains with the European management team, with a temporary director appointed and nearly all shares transferred to an administrator.
Impact on Global Supply Chains and Wingtech's Response
The ongoing dispute has significantly impacted the global automotive industry, which relies on Nexperia's basic, standardized chips for essential functions like headlights, airbag systems, and anti-lock brakes. Divisions have emerged between Nexperia's Chinese operations and its European and Southeast Asian units, disrupting the production chain and jeopardizing customer deliveries.
Wingtech Technology, Nexperia's Chinese parent company, expressed 'profound disappointment and strong dissatisfaction' with the ruling, calling it 'self-contradictory and logically flawed.' Wingtech argues that the interim measures have caused 'irreversible damage' to Nexperia's operations and threaten the stability of the global semiconductor supply chain. The company has vowed to pursue all available legal avenues to restore its full shareholder rights and governance control over Nexperia.
Background of Dutch Government Intervention
The Dutch government had previously taken the extraordinary step of effectively seizing control of Nexperia in October 2025, citing security concerns and 'serious governance shortcomings.' This intervention utilized a Cold War-era law and followed concerns raised by U.S. officials about Zhang Xuezheng's leadership. While the Dutch government later suspended its direct control as a 'show of goodwill,' the court's interim measures have remained in effect.
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