Key Points
- A Dutch court will hold a hearing on January 14 to determine whether to open an investigation into Nexperia.
- The company is accused of mismanagement that has caused chip shortages in the auto industry.
- The court has already suspended the CEO and temporarily transferred ownership.
- The Dutch government briefly seized control of the company in September.
A Dutch court is set to hold a hearing on January 14 to decide whether to launch a formal investigation into alleged mismanagement at the computer chip company Nexperia. This hearing will be the first time the public gets a look at a messy internal dispute that has already caused major disruptions in the supply of chips for the auto industry.
The legal battle has been brewing for months. In October, a court took the dramatic step of suspending Nexperia’s CEO, Zhang Xuezheng, and temporarily transferring the company’s ownership from its Chinese parent, Wingtech, to a Dutch lawyer.
Even the Dutch government got involved, briefly seizing control of the company in September before reversing that decision.
The chaos at Nexperia has led to a shortage of the basic chips that carmakers need in huge quantities. With the company’s leadership in turmoil, production has been hit, and the ripple effects are being felt across the automotive world.
Nexperia appears to support the investigation. The company said in a statement that there are “sound reasons to doubt the course of affairs and that an investigation must be ordered.” This suggests that the internal conflict runs deep and that the company is seeking a court resolution.
The court will hear arguments from all parties on January 14 and then decide whether a full investigation is necessary. The outcome of this case could significantly impact not only Nexperia’s future but also the global supply of essential computer chips.
