A Dutch investigation into mismanagement at semiconductor manufacturer Nexperia by its parent company, Wingtech, is the latest chapter in a series of spats between the European Union and China over corporate governance.
The local Amsterdam Enterprise Chamber ordered the investigation. In a written statement to explain the decision, the court said that “the situation at Nexperia primarily calls for stability so that Nexperia can restore its internal relationships, its production chain, and its delivery to customers.”
As part of the decision, former CEO and Wingtech founder Zhang Xuezheng is suspended from decision-making at Nexperia. Shareholder voting rights have been placed temporarily under a Dutch-appointed administrator. This situation, first declared in another court decision last October, will remain in place until the probe is completed, which could take several months.
The investigation stemmed from suspicions of a conflict of interest between the parent company and Nexperia. The court noted mismanagement, finding that Wingtech failed to address potential conflicts of interest and altered strategies without consultation at the expense of the company’s European branch. The Dutch government became concerned that Nexperia could not provide chips in an emergency due to the parent company’s industrial choices.
In a statement, Wingtech accepted the decision but vowed to restore full voting rights for its shares through legal means. In a statement to China’s Global Times, the company said that they “will continue to resolutely safeguard its legitimate rights and interests through all legal means and uphold the openness, cooperation and stability of the global semiconductor industrial chain.”
