Legal Tussle Over Nexperia: A Chip-making Controversy Unfolds

Wingtech has appealed to the Netherlands' Supreme Court against decisions removing its control over Nexperia due to concerns about intellectual property movement to China. This move has amplified chip shortages in the automotive sector. The case highlights the geopolitical struggles affecting global supply chains.

China's Wingtech has escalated its battle over the control of its Nexperia subsidiary by appealing to the Netherlands' Supreme Court. The appeal comes after a high-profile dispute with the Dutch government.

On September 30, the Dutch authorities took action against Nexperia, voicing fears that the company was transferring essential intellectual assets to China, sparking a series of contentious legal moves. The Amsterdam Enterprise Court promptly removed Nexperia's former CEO and handed control to a Dutch lawyer, creating waves in the international tech industry.

The core of Wingtech's argument in its latest appeal, lodged on November 26, is a procedural critique of the swift and unilateral decisions by the Dutch courts. With repercussions already felt in the automotive sector due to a resultant chip shortage, this legal wrangling underscores the fragility and interconnectedness of global supply chains.

(With inputs from agencies.)