Wingtech Faces $8B Dispute Amid AI Chip Crisis

• Court freezes voting rights, sparking supply chain turmoil in chip production
• Honda halts manufacturing, signaling broader global impact

On December 22, 2025, Bloomberg reported that a Dutch court ruling removed Zhang Xuezheng, founder of Wingtech, as CEO of Nexperia and transferred voting rights within Nexperia to court-appointed trustees. This legal action effectively split Nexperia into two non-cooperative entities: its Dutch headquarters and its Chinese operational unit, disrupting global semiconductor supply chains.

Global Impact: Automotive Production Stalled
The division disrupted Nexperia’s wafer supply chain, with its Dutch headquarters halting the supply of silicon wafers to its Guangdong finishing plant in China. In response, the Chinese unit severed ties with the Dutch headquarters and began sourcing wafers locally. This operational standoff caused immediate production disruptions. Honda announced manufacturing halts in Japan and China due to shortages of AI chips linked to the crisis.

Wingtech Threatens Arbitration Amid Allegations
Wingtech, Nexperia's parent company, accused the Dutch government of violating a bilateral investment treaty, issuing a notice of dispute and threatening international arbitration with a potential $8 billion claim. Ruby Yang, Wingtech’s chairwoman, further alleged that certain Dutch managers exploited the conflict for their personal gain. Nexperia countered the allegations, denying any wrongdoing.

The dispute extends to Nexperia’s Shanghai factory project, WingSkySemi, which Wingtech claims formed part of an agreed strategic plan. Yang argued that current executives—who now accuse Wingtech of financial misconduct—had previously endorsed the venture. Nexperia contended that Wingtech inflated orders for the Shanghai plant under Zhang’s leadership to manipulate its financial performance.

Rethinking the Semiconductor Supply Chain
The crisis highlights vulnerabilities in the semiconductor industry. Nexperia’s Dutch operations produce wafers, while its Chinese facilities oversee assembly and packaging, making the processes interdependent. Their separation has created bottlenecks, particularly for automotive companies. Reports suggest Nexperia’s Chinese unit has secured domestic suppliers for its 2026 production schedule. The firm has also scaled operations in Malaysia, signaling efforts to diversify beyond Chinese dependencies—a move that could reshape global semiconductor trade dynamics.

Legal and Operational Battle Continues
Despite the impasse, Wingtech has appealed to the Dutch Supreme Court and initiated dialogue with court-appointed trustees to regain operational control. As of late December, discussions between both parties have commenced, with mutual agreement to maintain communication as legal and operational challenges unfold.