Nexperia's Chinese CEO Zhang Xuezheng, who’s also founder of Nexperia owner Wingtech, was suspended by the enterprise chamber in October following claims of mismanagement.At a court hearing last month, lawyers for Zhang and Wingtech painted him as a successful businessman trying to guide Nexperia through troubled geopolitical waters.They urged the court not to order an investigation and said Wingtech had been blindsided by the Dutch government move.Zhang was not in court for the hearing.An English statement issued by the court on Wednesday's ruling said that chamber found that “a conflict of interest has been handled without due care” at Nexperia.The court statement said that it could not definitively say how long the investigation would take, but added that such probes can take more than six months.
The court will use the findings to assess “whether there has been mismanagement at Nexperia and whether definitive measures need to be taken.”Popular ReadsNancy Guthrie abduction timeline: Person detained for questioningFeb 11, 12:57 AMNancy Guthrie case: Person released as search for 'armed individual' continuesFeb 10, 11:15 PMNancy Guthrie latest: Savannah Guthrie pleads with public, 'We need your help'Feb 9, 8:02 PMThe dispute at Nexperia escalated when China temporarily blocked the export of Nexperia chips from its plant in China in October, sending global auto manufacturers scrambling to secure supplies and alternatives.Beijing’s export ban was later lifted, after U.S.President Donald Trump met with Chinese leader Xi Jinping in late October.
And the Dutch government in November said it was relinquishing its control of Nexperia as a “show of goodwill.”But a standoff between Nexperia’s headquarters in the Netherlands and its Chinese unit continued to fuel chip supply chain concerns.Nexperia’s Chinese arm had said its Dutch headquarters interrupted shipments of wafers to its Chinese factory, which it said had impacted its core production operations and weighed on its ability in delivering finished products.Nexperia’s headquarters hit back, and said the Chinese unit had ignored instructions from the head office.“Nexperia’s situation now requires, first and foremost, a situation of calm that allows Nexperia to restore its internal relations, its production chain and deliveries to customers,” the court said Wednesday.Car manufacturers including Honda had to halt production of some cars as the Nexperia crisis unfolded, and Mercedes-Benz was among those scrambling to find alternatives.Nexperia was spun off from Philips Semiconductors two decades ago and then purchased in 2018 by Wingtech.
In 2023, the British government blocked Nexperia’s bid to acquire Wales-based chipmaker Newport Wafer Fab, citing national security risks.
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