A Dutch enterprise court held a hearing on the 14th, where the European management of Nexperia faced off against its Chinese parent company, Wintech, in the latest round of a battle for control that has contributed to a global shortage of automotive chips.
Last October 7th, the Dutch enterprise court ruled to suspend Wintech founder Zhang Xuezheng from his position as CEO of Nexperia and strip Wintech of its control over the Dutch chipmaker, citing "sufficient reason to suspect" corporate mismanagement. During the first public hearing held this Wednesday, the judge was set to hear arguments from both sides to decide whether a full investigation into the "mismanagement" allegations raised by Nexperia's European executives should be launched, or whether the prior ruling should be overturned.
The struggle for control of Nexperia is entering a critical phase. If the Dutch court decides to initiate a formal investigation, a court-appointed administrator may continue to control the Nijmegen-based company, prolonging the dispute between Wintech and Nexperia. Conversely, if the court rules against an investigation, Wintech would regain control of Nexperia, potentially ending a standoff that has disrupted the automotive industry in Europe and globally.
Wintech is expected to argue in the hearing that Nexperia is a subsidiary of a Chinese company with significant sales, a stable customer base, and vast growth potential within China, and that the development plan formulated by Zhang Xuezheng is reasonable. Wintech's Chairman, Yang Mu, stated in a declaration on Tuesday that only by revoking the previous measures can the company navigate through the current crisis.
Zhang Xuezheng himself is reportedly not attending the hearing in person, with his legal counsel representing him. The Dutch government is expected to voice its support for Nexperia's European management. A final ruling will be announced on a subsequently specified date.
Wei Shaojun, Vice Chairman of the China Semiconductor Industry Association, commented on the 14th, stating, "We consistently maintain that the semiconductor industry is a typical example of globalization. Its technological evolution and commercial development should follow market rules and industrial logic. Corporate investment, R&D cooperation, and product sales are, in essence, economic activities and should not be easily labeled with geopolitical tags. We also call on governments to maintain an objective and fair stance, reduce non-market factor interventions, and jointly uphold a fair, transparent, and predictable international business environment. Only in this way can we genuinely promote global technological progress and shared benefits."
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