Key Points:
- A Dutch court ordered an investigation into mismanagement at chipmaker Nexperia.
- Former CEO Zhang Xuezheng remains suspended to ensure company stability.
- Control stays with the European team and a court-appointed lawyer.
- Judges cited conflicts of interest regarding a Shanghai plant owned by Zhang.
A Dutch court made a major decision on Wednesday regarding the troubled chipmaker Nexperia. The judges ordered an official investigation into how the company is managed. They also ruled that former CEO Zhang Xuezheng must stay suspended. This ruling keeps control of the firm in the hands of its European leadership team and a court-appointed lawyer.
The court stated clearly that the company needs peace and stability right now. Internal fighting has seriously disrupted Nexperia’s ability to make and deliver products. The judges want the current management to focus on fixing relationships and getting production back on track without interference from the ongoing dispute between the different parts of the organization.
This corporate conflict has real-world consequences. Nexperia is a vital supplier for the automotive industry. A breakdown in relations between the company’s European manufacturing arm and its Chinese distribution branch caused severe shortages. Carmakers around the world are still struggling to get essential chips for their vehicle electrical systems.
The court found evidence of concerning behavior by the former leadership. Judges pointed to “indications of negligent conduct” involving Zhang. Specifically, they noted a conflict of interest because Zhang personally owned a factory in Shanghai that did business with Nexperia. They also criticized him for changing the company’s strategy without consulting the rest of the board, especially while the company faced threats of U.S. sanctions.
This corporate battle is happening in the middle of a larger geopolitical fight. Throughout 2025, the U.S., Dutch, and Chinese governments all issued and retracted various regulations affecting Nexperia.
Lawyers for Wingtech, the Chinese parent company, tried to defend Zhang’s actions earlier this year. They argued that his decisions were part of a logical plan to focus the company on China, the world’s biggest car market. However, the court decided that the immediate need for stability outweighs those arguments.
