Nexperia Sues Parent Wingtech for $2 Billion Over Supply Chain

Nexperia has filed a lawsuit in a Dutch court against its Chinese parent company, Wingtech Technology, and Wingtech founder Zhang Xuezheng, seeking more than $2 billion in compensation. The Dutch chipmaker alleges that Wingtech violated internal agreements by establishing an independent Chinese supply chain that created direct competition and harmed Nexperia's operations. Wingtech has rejected these allegations and stated it will defend itself if formally served.

This legal action follows a period of escalating governance conflicts. In October 2025, the Enterprise Chamber of the Amsterdam Court of Appeal suspended Zhang Xuezheng and transferred Wingtech's voting rights to an independent administrator. Previously, in May, Wingtech filed its own lawsuit in China seeking approximately $1.2 billion in damages from Nexperia entities and executives for alleged discriminatory restrictions.

The corporate dispute has already had geopolitical and industrial consequences. The conflict led to a temporary Chinese export ban on chips from Dongguan, which caused supply disruptions for automakers before government interventions eased the shortages. Additionally, the Netherlands intervened in September 2025 regarding the relocation of Nexperia's operations to China.