Chinese Court Freezes Nexperia Assets in Wingtech Custody Battle

A court in China has placed a freeze on assets worth 2.14 billion yuan (approximately US$318 million) associated with Nexperia, a semiconductor company based in the Netherlands, amid an intense custody dispute with its Chinese parent company, Wingtech. The Dongguan Intermediate People's Court in Guangdong province issued the freeze on equity stakes in four of Nexperia's subsidiaries and interests in another Chinese firm owned by Itec BV, which was created from Nexperia in 2021. This freeze, which affects assets in Dongguan, Shanghai, and Wuxi, will remain in effect for three years, until August 2029. According to Luo Zhiyu of DeHeng Law Offices in Beijing, the action is intended to safeguard the Chinese subsidiaries' assets from being pledged or transferred. The ongoing dispute has been exacerbated by Dutch government intervention, isolating Nexperia's operations in China. Wingtech revealed the court's decision in a filing to the Shanghai Stock Exchange on Monday, and the drawn-out legal battle is anticipated to keep these assets frozen for years, influencing the company's operational strategy.