October 12 (Beijing Time), China's Wingtech Technology Co., Ltd. (SH: 600745) announced that the Dutch government has issued an order to freeze all assets of its wholly owned subsidiary Nexperia and its 30 global affiliates for one year, citing undisclosed sensitive information.

According to Wingtech's stock exchange filing, the Netherlands' Ministry of Economic Affairs and Climate Policy issued the order on September 30, prohibiting Nexperia and its subsidiaries, branches, and offices worldwide from making any changes to their assets, intellectual property, business operations, or personnel until September 2026.

The following day, Nexperia Holding B.V. and Nexperia B.V., both registered in the Netherlands, filed an urgent petition with the Enterprise Chamber of the Amsterdam Court of Appeal, seeking an investigation and temporary measures. Supported by Nexperia's Chief Financial Officer Stefan Tilger and Chief Operating Officer Achim Kempe, Chief Legal Officer Ruben Lichtenberg submitted the request on behalf of the company.

Without holding a hearing, the court immediately suspended Zhang Xuezheng (also known as Simon Zhang) from his positions as executive director of Nexperia Holding and non-executive director of Nexperia, and temporarily suspended his CEO authority under company bylaws. The court also ordered that all shares of Nexperia Holding held by Wingtech's Hong Kong subsidiary, Wingtech Group Co. Limited, be placed under third-party management pending further proceedings.

A hearing was held on October 6, and on October 7, the Enterprise Chamber ruled to extend and formalize the interim measures. The court:

Confirmed Zhang's suspension from all directorial duties at both Nexperia Holding and Nexperia B.V.;

Appointed an independent foreign director with decisive voting rights to represent the companies;

Placed all Nexperia shares (except one) under court-appointed custodianship until the investigation concludes or a final judgment is issued.

Impact on Wingtech

Wingtech began acquiring stakes in Nexperia in 2018 and achieved full ownership in 2021, investing over RMB 33 billion (approximately USD 4.5 billion)—the largest outbound semiconductor acquisition by a Chinese company to date.

Wingtech's operations span two main segments: integrated product manufacturing (ODM) and semiconductors. In 2024, the two businesses contributed RMB 58.27 billion and RMB 14.72 billion in revenue, accounting for 79.2% and 20.0% of total sales, respectively. The semiconductor division, which primarily consists of Nexperia, generated a gross margin of 37.5%.

In the first half of 2025, Wingtech reported revenue of RMB 25.34 billion and a net profit of RMB 474 million, up 237% year-on-year. Semiconductor revenue reached RMB 7.83 billion, rising 11.2% from a year earlier, with net profit increasing 17.0% to RMB 1.26 billion.

The company recently sold its ODM assets, including operations in Hong Kong, Indonesia, Wuxi, and India, to focus on its semiconductor business. Following these divestitures, Nexperia remains Wingtech's only major operating asset.

Analysts note that if the Dutch government later requires Wingtech to divest Nexperia, the Chinese firm could effectively become a shell company.

Company Response

Wingtech said Nexperia's daily operations remain stable for now but acknowledged that the government order and court rulings could temporarily disrupt decision-making and resource allocation. While its shareholder control rights are restricted, Wingtech emphasized that its economic interests in Nexperia remain intact.

The company said it is maintaining close communication with suppliers and customers to stabilize production and sales, and has engaged international law firms to explore legal remedies. It also pledged to "take all possible actions to safeguard the legitimate rights and interests of the company and its shareholders" and to cooperate with government authorities.

Wingtech's shares and convertible bonds are set to resume trading on October 13 after being suspended for verification of material information.