Nexperia sues Wingtech and founder over alleged $2 billion damages

Nexperia has filed a lawsuit against parent company Wingtech and founder Zhang Xuezheng in the Netherlands, seeking $2 billion in damages. The Dutch chip manufacturer says the proceedings aim to hold the defendants accountable for actions it believes caused significant harm to the company and its business. Wingtech rejects all allegations, setting up another stage in a dispute that has already drawn Dutch government intervention.

Lawsuit details

Nexperia is demanding $2 billion in compensation. According to Wingtech, Nexperia's Dutch arm claims that Nexperia's China and Shanghai branches breached internal agreements and established an independent supply chain. Wingtech says this created direct competition and constitutes unfair business practices under Dutch law. The company also says it will engage a lawyer abroad if the court formally accepts the summons, which it says has not yet happened.

Background and government intervention

For more than a year, Nexperia has been embroiled in a conflict with Wingtech. The clash began when the Dutch government took control of the chip manufacturer in September 2025 because of serious governance shortcomings and actions within the company. Zhang Xuezheng, founder and CEO of Nexperia, was engaged in a conflict of interest and tried to dismiss three critical non-Chinese board members, according to the account. The Dutch government said these signals threatened the continuity and safeguarding on Dutch and European soil of crucial technological knowledge and capabilities. In November 2025, the Dutch government returned control of Nexperia to China after Dutch diplomats smoothed things over with Beijing.

Separate legal action

Wingtech also initiated a lawsuit this year. The company is seeking $8 billion from the Dutch government, alleging meddling in its internal affairs caused significant operational disruption and financial losses. Legal experts have said it is highly unlikely that Wingtech will be awarded the amount of damages it seeks. Nexperia says its own case seeks compensation for resulting damages.

Sources: Cybernews