Wingtech challenges Nexperia decisions at Netherlands’ Supreme Court

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By Toby Sterling

AMSTERDAM (Reuters) -China’s Wingtech on Friday said it has appealed decisions stripping it of control of its Nexperia chipmaking subsidiary to the Netherlands’ Supreme Court.

The dispute over Nexperia, which has contributed to shortages of chips widely used in car electrical systems, began on September 30 when the Dutch government moved to seize control of the company, citing concerns it was moving intellectual property and operations to China.

A day later, the Amsterdam Enterprise Court suspended Nexperia’s former CEO Xuezheng Zhang and placed the company’s shares under the control of a Dutch lawyer.

The emergency ruling followed a lawsuit by European members of Nexperia’s management alleging mismanagement.

Wingtech’s appeal, filed on November 26, argued that the October 1 decisions – made in a single day – were not proper due to Dutch state involvement and because judges ruled “ex parte” – meaning without hearing arguments from Wingtech.

Wingtech’s appeal was made to the Supreme Court because the Amsterdam Enterprise Court is an appeals court. The high court is not expected to rule this year.

Separately, Wingtech has appealed the Dutch state’s intervention, which was later suspended following talks with Beijing. 

Although the U.S., Chinese and Dutch governments have stepped back from the dispute, the struggle for control of Nexperia continues to disrupt production and the auto industry says shortages of its chips still threaten output.

Nexperia makes most of its wafers in Europe, and previously shipped most to China for packaging and distribution. Its European headquarters has halted shipments to China, citing nonpayment, while the Chinese arm is operating independently.

(Reporting by Toby Sterling, Editing by Louise Heavens)