A high‑stakes legal battle over Dutch chipmaker Nexperia is straining Europe‑China ties and jeopardising car manufacturers worldwide. Learn how the dispute could affect you – read more now.
The semiconductor showdown between Europe and China has reached a breaking point as a Dutch court split Nexperia into two rival entities. The outcome will shape the future of high‑value chip production and could rewrite the rules of the global auto supply chain.
The Legal Battle Unfolds
In October 2025, a Dutch court stripped Chinese owner Wingtech Technology of control over Nexperia BV, appointing court‑selected managers to run the Dutch operation. The ruling created a split: Nexperia Netherlands, overseen by independent directors, and Nexperia China, still linked to Wingtech, which holds roughly 30% of the company’s shares through entities tied to the Chinese government.
Wingtech immediately filed an appeal, arguing that the decision violates property rights and undermines its investment. A hearing in Amsterdam this week will determine whether the dispute is settled quickly or drags on into a protracted legal war.
What’s at Stake for Europe?
European policymakers view the case as a test of “de‑risking” – reducing reliance on Chinese‑controlled technology while preserving commercial ties. If the Dutch‑based Nexperia remains independent, Europe keeps a rare source of legacy chips that are essential for automotive electronics, power management, and consumer devices.
Strategic think‑tank analyst Benedetta Girardi of the Hague Strategy Research Centre notes, “The court’s move sets a precedent for safeguarding key tech assets from foreign influence. It’s about sovereignty, not isolation.”
Wingtech’s Countermove
Since taking over Nexperia in 2019, Wingtech has been expanding its legal arsenal, negotiating with the court‑appointed managers while pushing to reclaim ownership. The company also claims it is already “self‑producing” wafers in China to offset any supply disruption, a statement confirmed by Wingtech Chairwoman Ruby Yang in a Bloomberg interview.
Yang added that the Dutch side is investing roughly $300 million to shift production capacity out of China, aiming for 90 % of output to be located abroad by mid‑2026. New fabs in Malaysia and the Philippines are slated to add tens of billions of chips per year, although Nexperia has kept specific capacity figures confidential.
Impact on Car Makers
Nexperia’s “legacy” chips may be simple, but they are ubiquitous in everything from engine control units to infotainment systems. Recent shortages have already forced Honda to pause operations at several plants, while Volkswagen, ZF Friedrichshafen and other OEMs scramble for alternative sources.
Analyst Jacob Feldgoise of Georgetown University warns, “When nations compete for each link in the semiconductor value chain, the break points become painfully visible. The risk to the auto sector is higher than anyone anticipated.”
Industry Reactions and Opportunities
Competing semiconductor firms, such as U.S.‑based ON Semiconductor, are signalling readiness to step in and capture Nexperia’s order book. This intensifies the pressure on both sides of the dispute to resolve the issue swiftly, lest they lose market share to rivals.
Meanwhile, banks have withdrawn hundreds of millions in financing, including an unused revolving credit line of $800 million, reflecting the heightened uncertainty. Despite this, Nexperia insists it carries no debt and maintains strong liquidity.
Future Scenarios
Two primary paths lie ahead:
- Independent Nexperia Netherlands wins: Europe secures a rare chip supplier, and production gradually migrates to new sites in Southeast Asia, reducing Chinese exposure.
- Wingtech regains control: The company may re‑centralise operations in China, potentially tightening supply for European carmakers and prompting a fresh wave of localisation efforts.
Either outcome will reshape the semiconductor landscape and could accelerate the push for on‑shoring or “friend‑shoring” of critical chip manufacturing.
What Comes Next?
The Amsterdam court’s decision will be a bellwether for how governments and corporations handle cross‑border tech disputes in an era of geopolitical tension. Auto manufacturers, investors, and consumers alike should keep a close eye on the proceedings – the ripple effects will be felt far beyond the factory floor.
Stay informed on this developing story and its implications for the global automotive ecosystem.