Key Points
- A Dutch court is considering a full investigation into alleged mismanagement at chipmaker Nexperia.
- The case stems from a power struggle between the company’s Dutch headquarters and its Chinese owners.
- The Dutch government temporarily seized control of Nexperia in October, citing national security concerns.
- The dispute has already caused major disruptions to the global auto industry’s chip supply.
The bitter power struggle at the Dutch semiconductor firm Nexperia went public on Wednesday as lawyers for the company and its Chinese owners faced off in an Amsterdam courtroom. The court is considering whether to launch a full-scale investigation into alleged mismanagement at the company. This corporate drama has already sent shockwaves through the global auto industry.
The whole matter came to light in October when the Dutch government took the extraordinary step of seizing control of Nexperia, citing national security concerns. The company’s Chinese CEO, Zhang Xuezheng, was replaced amid fears that valuable intellectual property was being transferred to China.
This move sparked an international incident. Beijing temporarily halted exports of Nexperia chips from its China factory, causing panic among car manufacturers that rely on the company’s products. Honda had to halt production of some cars, and Mercedes-Benz was left scrambling for alternatives.
While the Dutch government later relinquished control of Nexperia as a “show of goodwill,” the internal fight has continued. The company’s Dutch headquarters and its Chinese unit have been publicly feuding, with each side accusing the other of disrupting the supply chain.
In court on Wednesday, lawyers for the Chinese owners argued that the CEO was just a successful businessman trying to navigate a difficult geopolitical situation. But Nexperia’s own lawyer told the judges that the Chinese parent company, Wingtech, is “willing to subordinate Nexperia’s interests to other interests.”
The court is not expected to make an immediate decision. Still, the outcome of this case will have major implications for the company’s future and the stability of the global chip supply.
