Court Upholds Suspension, Orders Six-Month Probe into Nexperia - Regulatory Storm Brews

A judicial hammer just came down—hard. The court's decision isn't just a ruling; it's a six-month countdown for a major player now under the microscope.

The Immediate Fallout

Operations are frozen. The suspension stands, no appeals, no workarounds. For the next half-year, every contract, every partnership, every line of code gets the forensic treatment. Regulators have their mandate and a calendar.

Why This Probe Matters

Six months is a lifetime in tech. It's not a slap on the wrist; it's a strategic timeout that lets competitors eat your lunch, your dinner, and your market share. The order signals a shift from passive oversight to active, deep-dive investigation. They're not just looking for violations—they're building a case.

The Bigger Picture

This move ripples far beyond one company. It's a test of regulatory resolve and a warning shot to the entire sector. When courts back lengthy probes, it tells every other firm that compliance isn't optional—it's existential.

The clock is ticking. In 180 days, we'll know if this was a corrective measure or a corporate death sentence. Either way, it's a masterclass in how quickly 'business as usual' can turn into a fight for survival. Just ask the shareholders—if they're still holding the bag.

Court upholds suspension and orders six-month probe into Nexperia

The Dutch government stepped in last September and temporarily seized control of Nexperia, which is based in Nijmegen.

Officials said Zhang’s actions created a threat to Europe’s security of supply. His shares were transferred to a trust. He kept the economic benefits but lost voting control.

On Wednesday, the Enterprise Chamber said it found “indications of negligent conduct involving a conflict of interest.”

The court said there were signs that a director, facing possible sanctions, changed the company’s strategy without consulting other board members.

It said agreements with the Ministry of Economic Affairs were not followed, the authority of European officials was reduced, and their resignations were announced. The court will appoint two investigators who will work for about six months. The investigation will also review the conduct of the Dutch management of Nexperia, which was one of Wingtech’s main requests.

Since the intervention, the European and Chinese parts of Nexperia have stopped working together. That breakdown caused chip shortages that affected the car sector.

The Hamburg plant halted shipments of silicon wafers to China for final assembly, stating it was not being paid. Customers responded by buying wafers from the European side and sending them to China themselves for assembly to bypass the internal conflict.

Lawyers trade accusations as US sanctions tighten pressure

During a January hearing, lawyers for Nexperia alleged that Zhang was transferring equipment to China and using company assets to support Wing Systems, another business he owns. They argued that Wingtech was “doing everything it can to destabilise” the company.

They also claimed it had “pressured virtually all of Nexperia’s business partners not to do business with it” and had urged the Chinese government to impose export restrictions that WOULD harm Nexperia, referencing the Dutch economy minister’s defense statement.

Zhang denied those claims in court, saying European executives mismanaged the company. He stated that he strengthened production in China to build a resilient supply chain against geopolitical shocks.

The dispute also intersects with US trade policy. In late 2024, the United States placed Wingtech on its “entity” list.

That required US companies to obtain licenses before trading with it. In September, the US Commerce Department said the restrictions would extend to Nexperia as a subsidiary.

Court documents showed that US officials warned the Dutch government that removing Zhang was necessary to avoid the listing.

After the ruling, Nexperia said its underlying business remains healthy and resilient and that it is focused on stabilising its supply chain and meeting customer demand worldwide.

Wingtech said it regretted the decision but remained confident that a full and impartial inquiry would show its actions were appropriate.

It added that the ruling prolongs significant uncertainty for a business already under strain since October 2025 and said it had not been presented with evidence justifying what it described as extraordinary measures.

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