Dutch court orders investigation over Nexperia's conduct

The Dutch Enterprise Chamber has ordered an investigation into Nexperia, a Dutch chipmaker, after finding grounds to question the accuracy of the company's policies and conduct. This follows the Chamber, a section of Amsterdam's court of appeal specializing in corporate law, suspending Nexperia's Chinese CEO, Zhang Xuezheng. The court temporarily transferred the company's shares to an administrator in late 2025, amid concerns about Zhang's actions and the risk that critical knowledge and production facilities would leave Europe.

The chamber's decision, made a month after a hearing with Nexperia's lawyers, to order an investigation is based on legitimate concerns about Nexperia's policies and conduct. Specifically, the Chamber found that a conflict of interest was mishandled and that the Nexperia director altered the company's strategy without proper internal consultation, potentially under threat of sanctions. These concerns have prompted a deeper review of whether mismanagement occurred and whether further measures are necessary to protect the company's interests.

Nexperia's recent turmoil

Nexperia, headquartered in Nijmegen, is a semiconductor company that produces chips for automotive and consumer electronics. It is owned by the Chinese company Wingtech, also led by Zhang. Over the past several months, Nexperia has been at the center of an international dispute, beginning in late September 2025 when the Dutch Minister of Economic Affairs invoked a Cold War-era law to assume control of the company, fearing the loss of critical knowledge and production facilities.

This intervention followed allegations that the CEO, also known as Mr. Wing, acted against Nexperia's interests, including placing substantial orders with another company he owned. The Enterprise Chamber shared these concerns, leading to Mr. Wing's suspension and the deprivation of the Chinese owner's shares.

The Dutch government's actions sparked conflict with China, leading to a ban on Nexperia's chip exports from China and causing considerable disruptions for automakers worldwide. By November 2025, the Dutch government suspended its intervention.

However, the initial measures taken by the Enterprise Chamber in October 2025 led to a rift within Nexperia's global operations, dividing the Chinese divisions from the European and Southeast Asian divisions. This division severely disrupted the production chain, triggered financial and legal disputes, and jeopardized customer deliveries. Adding to the complexity, in January, Mr. Wing's lawyer disclosed at a hearing in the Enterprise Chamber that Nexperia had explored selling its European factories under 'Project Rainbow' to mitigate the risk of being added to a U.S. blacklist, a plan not communicated to other executives.

What happens next?

The Enterprise Chamber will appoint two investigators to conduct a thorough investigation and produce a report, which will be shared with all parties involved and the Chamber itself. While the investigation is expected to take more than six months, this timeline is not unusual for such complex cases.

In the meantime, the immediate measures imposed in October 2025 will remain in place, including the suspension of the director and the temporary transfer of shares to an administrator. The Enterprise Chamber emphasizes that the priority is to restore calm within Nexperia, allowing the company to rebuild its internal relations, production chain, and customer deliveries.