Dutch Court Decides Nexperia’s Fate in High-Stakes Semiconductor Showdown

Control over one of Europe's critical chipmakers hangs in the balance as a Dutch court prepares its verdict. The decision will determine who steers Nexperia—a linchpin in the global semiconductor supply chain—through an era of escalating tech nationalism and supply crunches.

The Battle for the Silicon Heart

This isn't just a corporate tussle; it's a fight for sovereignty over the tiny components that power everything from smartphones to electric vehicles. The courtroom drama pits strategic industrial interests against financial ones, with national security concerns whispering in the background. The outcome could reshape supply lines and alter the competitive landscape overnight.

Why This Verdict Shakes the Market

Semiconductors are the new oil, and control over their production is a geopolitical lever. A shift in Nexperia's ownership could redirect critical manufacturing capacity, influence pricing, and trigger a domino effect across consumer electronics and automotive sectors. Investors are watching—not for the legal precedent, but for the supply chain certainty (or lack thereof) it will create.

The ruling cuts to the core of a modern dilemma: in a world running on silicon, who gets to hold the keys to the fab? One thing's certain—the winners won't be celebrating with champagne, but with secured purchase orders and a cynical nod to the fact that in today's economy, controlling chips is far more profitable than trading them.

Chinese parent company pushes back

Ruby Yang, who chairs Wingtech, said in a statement Tuesday that the company could only survive if previous court measures were reversed. Wingtech plans to tell the court that Zhang’s strategy for Nexperia made sense for a subsidiary of a Chinese company with major sales, customers, and growth possibilities in China, the world’s biggest car market.

Zhang won’t show up in person, but his attorneys will speak for him. Dutch government representatives are expected to back Nexperia’s position.

During 2025, the U.S., Dutch and Chinese governments all put measures in place affecting Nexperia, then pulled them back, citing concerns about geopolitics and strategy.

Nexperia, which brought in $331 million in profit on $2.06 billion in sales during 2024, is now splitting into two smaller companies while customers search for other chip suppliers.

The way Nexperia operates involves making silicon wafers in Europe that contain multiple chips. These wafers then travel to a plant in China where workers cut and package them. However, as reported by Cryptopolitan, the Dutch company stopped sending wafers to China in October because bills weren’t being paid. Nexperia plans to put $300 million into expanding packaging operations in Malaysia to serve customers outside China.

The packaging facility in Dongguan has renamed itself “Nexperia China” and intends to replace European production with Chinese options, including supplies from Zhang’s WingSkySemi plant.

Honda extends factory shutdowns

Honda, Japan’s second-largest automaker, confirmed it will keep three Chinese factories closed for an additional two weeks because of semiconductor shortages. The plants, run through the GAC-Honda partnership, will now restart on 19 January instead of 6 January as originally planned. They shut down on 29 December before the extension was announced.

These facilities made roughly 816,597 vehicles in 2024, representing about 22% of Honda’s worldwide production. The company also delivered over 850,000 vehicles in China during the same period.

Honda also stopped operations at two Japanese plants in early January due to supply issues amid Nexperia fallout. The company cut its global sales forecast from 3.62 million to 3.34 million vehicles and expects semiconductor shortages to reduce operating profit by approximately $960 million for the fiscal year ending March 2026.

Meanwhile, the TRUMP administration announced that tariffs on Chinese semiconductor imports will rise in June 2027, though the specific rate will be announced at least a month before. Until then, the tariff rate on semiconductor imports from China will stay at zero for 18 months.

Trade officials said their investigation found China using unfair trade practices in the industry. “For decades, China has targeted the semiconductor industry for dominance and has employed increasingly aggressive and sweeping non-market policies and practices in pursuing dominance of the sector,” the filing stated.

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