Chinese Court Freezes $300 Million in Nexperia Assets

The Dongguan Intermediate People's Court in China froze approximately 2.14 billion yuan ($300 million) in assets belonging to Nexperia and its equipment arm. The freeze, which took effect between August 20 and August 25 and lasts until August 2029, covers the Dutch chipmaker's stakes in four China-based businesses.

The judicial action follows a May lawsuit filed by Wingtech Technology and a subsidiary seeking 8 billion yuan in damages. Wingtech alleges that Nexperia and its executives violated China's Anti-Foreign Sanctions Law by implementing discriminatory Dutch restrictions.

The conflict originated from an intervention by the Dutch government over national security concerns regarding the transfer of technology and assets abroad. This intervention resulted in the suspension of Nexperia CEO Zhang Xuezheng and the removal of Wingtech's voting rights. In response to the escalating dispute, Nexperia's China unit is shifting its entire product line to a domestic 12-inch wafer foundry to reduce its reliance on European wafers.