Dutch Government Freezes Assets of Wingtech’s Nexperia — Semiconductor Giant with Over ¥14.7 Billion in Annual Revenue

On October 12, Wingtech Technology, which had been suspended from trading for several days due to undisclosed major information, announced that the Dutch government had frozen all assets of its subsidiary Nexperia and its 30 global entities effective September 30, 2025, for one year. According to the statement, both Nexperia B.V. and Nexperia Holding B.V. received a ministerial order from the Netherlands Ministry of Economic Affairs and Climate Policy, as well as a ruling from the Amsterdam Enterprise Chamber of the Court of Appeal. On September 30, 2025, the Dutch Ministry issued an order prohibiting Nexperia and all its subsidiaries, branches, and offices worldwide from making any adjustments to their assets, intellectual property, operations, or personnel for one year. On October 1, 2025, Nexperia’s Chief Legal Officer Ruben Lichtenberg (Netherlands), supported by CFO Stefan Tilger and COO Achim Kempe (both German), submitted an emergency petition to the Enterprise Chamber requesting an investigation and temporary measures. Without a public hearing, the court immediately enacted several emergency measures: suspending Zhang Xuezheng from his executive and non-executive roles within Nexperia, suspending his CEO authority, and placing the shares of Union Development Holdings Ltd. (a Hong Kong–registered Wingtech subsidiary and sole shareholder of Nexperia Holding) under third-party trusteeship until the October 6 hearing. Following the hearing, on October 7, the court ruled that Zhang Xuezheng’s positions would remain suspended, an independent foreign director appointed by the court would assume decisive voting power and act independently on behalf of Nexperia, and nearly all shares of Nexperia B.V. (except one) would be placed under custodial management for oversight purposes. Wingtech began acquiring Nexperia in 2018, investing over ¥33 billion — marking China’s largest cross-border semiconductor acquisition in history. The acquisition unfolded in stages: an initial purchase of 33.66% in 2018 for ¥11.4 billion at a 63% premium, a 2019 expansion raising its stake to 79.98% with ¥19.9 billion in new capital, and subsequent smaller acquisitions that brought total ownership to 100%. Nexperia has been a critical part of Wingtech’s business, contributing ¥14.7 billion in 2024 revenue, or about 20% of the company’s total, with a high gross margin of 37.52%, compared to 2.49% for its ODM operations. In the first half of 2025, Wingtech reported revenue of ¥25.3 billion and net profit of ¥474 million, up 237.36% year-on-year, with semiconductor revenue increasing 11.23% to ¥7.8 billion and net profit up 17.05%. Earlier this year, Wingtech announced the sale of its ODM assets. As of October 12, asset transfers in Kunming, Shenzhen, Huangshi, Hong Kong, Indonesia, and Wuxi had been completed or were in progress. Once finalized, Wingtech’s business would primarily consist of its semiconductor arm — Nexperia. This means that if the Dutch government ultimately forces Nexperia to divest, Wingtech could effectively be left as an empty shell. Wingtech stated that Nexperia’s daily operations remain functional but acknowledged temporary disruptions caused by the ministerial order and court rulings, including slower decision-making and reduced operational flexibility. The court’s measures mean that Union Development Holdings, except for one retained share, temporarily lost shareholder rights such as voting and governance but kept its economic ownership intact. The company emphasized that it is maintaining close communication with suppliers, customers, and employees to stabilize production and sales, consulting international law firms to pursue legal remedies, and coordinating with government authorities for support. Wingtech reaffirmed its commitment to protecting investor interests, ensuring transparent information disclosure, and taking all necessary actions to safeguard the company’s long-term stability and legal rights amid this unprecedented regulatory challenge.