Wingtech Secures Court Freeze on Nexperia's Chinese Subsidiaries in Ownership Battle
A Chinese court has frozen approximately $318 million in assets belonging to Dutch chipmaker Nexperia and its equipment arm ITEC, covering stakes in five Chinese subsidiaries until August 2029. The order stems from an 8 billion yuan damages claim filed by Wingtech Technology, which seeks to regain control of Nexperia after Dutch authorities stripped its ownership in 2025. Nexperia maintains that the freeze will not disrupt its day-to-day operations, though it already lacks control over the affected Chinese entities.
The Dongguan court's freeze covers Nexperia B.V.'s full ownership of three Chinese chipmaking units and a 99% stake in a fourth, plus ITEC B.V.'s complete holding in its Wuxi equipment subsidiary. The restriction blocks any sale, transfer, or restructuring of those equity stakes until August 2029, unless the court lifts it early. Wingtech's underlying lawsuit, filed in May, seeks 8 billion yuan in damages and names three Nexperia executives, including the interim CEO, alleging they enforced Dutch government measures against the company.
Wingtech's financial position remains precarious, with first-half 2026 revenue of just 1.51 billion yuan—a drop of more than 90% from the prior year—and a net loss of 406 million yuan. Its shares carry a delisting-risk designation after auditors could not verify 57% of its assets, most of which sit inside Nexperia entities Wingtech cannot access. Nexperia insists the freeze targets only Chinese operations already outside its governance and will not affect its broader business.
This freeze could ripple through the global semiconductor supply chain, as Nexperia supplies chips used widely in automotive and industrial electronics. Customers may face uncertainty about long-term supply continuity, while Wingtech's shareholders bear the brunt of a prolonged legal battle that has already crushed revenue. The case also highlights how national security interventions in chip ownership can create cross-border legal entanglements, potentially discouraging future foreign investment in sensitive technology sectors. A resolution before 2029 appears unlikely, leaving both companies' Chinese operations in legal limbo.