Chinese Court Freezes 400 Billion Won in Nexperia’s Assets in China, Intensifying Control Dispute

[Financial News] A Chinese court has seized and frozen assets worth about 400 billion won held by Dutch semiconductor company Nexperia and its related equipment business unit. The move came after the Government of the Netherlands restricted the management rights of the Chinese company that acquired Nexperia. It is being seen as a power struggle between the Netherlands and China over control of a global general-purpose semiconductor technology company.
According to Securities Times and China News Service on the 1st, Wingtech Technology, the Chinese parent company that acquired Nexperia, said in a disclosure the previous day that the Intermediate People’s Court of Dongguan, Guangdong Province, had issued the property preservation order.
The court seized and froze assets, including shares in Chinese subsidiaries held by Nexperia in China, worth 2.13905 billion yuan, or about 430 billion won. The action is being interpreted as retaliation against measures taken by the Dutch government over concerns about technology leaks.
The court accepted a property preservation request filed earlier by Wingtech Technology and its subsidiary Yuching Holding Ltd. in connection with an 8 billion yuan, or about 1.63 trillion won, damages suit against Nexperia’s Dutch side. The frozen assets include stakes in four Chinese entities owned by Nexperia and one Wuxi-based company owned by the equipment business affiliate Antaike (ITEC).



The conflict between the two sides escalated in earnest last year after the Dutch government and courts intervened in Nexperia’s management and governance.
In September last year, the Government of the Netherlands invoked the Goods Supply Act, citing concerns that Nexperia’s production assets, funds and technology could be transferred overseas. It issued an administrative order allowing the government to block major management decisions, including the transfer of the company’s core assets.
It also suspended the CEO’s duties and moved to restrict management control by placing voting rights tied to Wingtech Technology’s shares under an independent body.
Nexperia, headquartered in the Netherlands, produces general-purpose semiconductors essential for automotive parts. It was acquired in 2019 by Wingtech Technology, a Chinese smartphone ODM company.
China retaliated by banning exports of Nexperia products made at its domestic factories. However, after consultations between the two countries, China later allowed supplies to resume, and the Dutch government suspended enforcement of the administrative order.
However, tensions continued this March when Nexperia’s headquarters in the Netherlands blocked work accounts for employees at its Chinese entities. A Dutch court’s restriction on Wingtech Technology’s voting rights also remains in place.


In May, Wingtech Technology also filed an 8 billion yuan damages claim against Nexperia and three executives, alleging discriminatory conduct based on the Dutch restrictions. The related case has not yet reached a hearing on the merits.
Foreign media outlets said the latest Chinese court action gives Wingtech Technology new leverage in its effort to regain control of Nexperia. They also said the fundamental issue behind the management dispute remains unresolved.
Local media, including China News Service, described the move as "an important step in Wingtech Technology’s use of domestic legal procedures to protect the legitimate rights and interests of overseas investment and respond to discriminatory extraterritorial restrictions."

[email protected] Reporter Lee Seok-woo Reporter