Nexperia faces $300M asset freeze in China amid ownership dispute

A Chinese court has frozen more than 2.14 billion yuan ($300 million) in assets belonging to Dutch chipmaker Nexperia and its equipment unit. The Dongguan Intermediate People’s Court issued the order following an asset-preservation request from Wingtech Technology and its subsidiary, Yucheng Holding. The freeze covers Nexperia’s stakes in several Chinese entities, including Nexperia Semiconductor China, Wuxi, and Shanghai, as well as its stake in Nexperia Semiconductor Technology Shanghai. These measures are set to remain in place until August 2029.

The legal action stems from an ongoing ownership dispute. Wingtech and Yucheng filed a lawsuit in May seeking 8 billion yuan in damages, alleging that Nexperia and its executives implemented “discriminatory restrictive measures” imposed by the Netherlands. This conflict follows Dutch authorities' intervention in 2025 over concerns regarding the potential transfer of technology and assets abroad, which led to the suspension of Nexperia’s chief executive and the placement of certain voting rights under independent management.

Despite the legal and ownership conflicts in China, Nexperia reported strong second-quarter financial results for its European operations. The company saw revenue increase by 18.4 percent to $355.6 million compared to the first quarter, driven by the AI market, data center investments, and a recovery in the automotive sector. Nexperia has excluded its Chinese subsidiaries from its consolidated financial results since October last year due to the loss of effective control over those entities.