China's Wingtech Sues Nexperia, Seeking 37 Billion TWD in Damages

The dispute between China's Wingtech and the Netherlands' Nexperia remains unresolved. Wingtech has filed a lawsuit in a Chinese court against Nexperia and six related entities and individuals, seeking 8 billion RMB (approximately 37 billion TWD) in damages. According to Chinese media outlet The Paper, Wingtech announced on the evening of the 22nd that it and its subsidiary, Yucheng Holdings, have sued Nexperia Holding B.V., Nexperia B.V., and four other related entities and individuals, and that the Intermediate People's Court of Dongguan City, Guangdong Province, has accepted the case. Wingtech stated that despite the suspension of an order issued by the Dutch government against Nexperia, the ruling by the Enterprise Chamber of the Amsterdam Court of Appeal remains in effect, and the company's control over Nexperia remains restricted. Wingtech and Yucheng Holdings argue that the aforementioned order and the Enterprise Chamber's ruling constitute discriminatory restrictive measures under the 'Anti-Foreign Sanctions Law.' They claim that the defendants actively facilitated, executed, or assisted in the execution of these discriminatory measures, causing irreparable and massive losses to the plaintiffs. Wingtech's lawsuit requests confirmation that the defendants' actions constitute the execution or assistance in the execution of discriminatory restrictive measures taken by a foreign state, and demands that the defendants immediately cease these infringing actions. Furthermore, Wingtech demands that the defendants jointly compensate the plaintiffs for economic losses caused by their execution or assistance in the execution of these discriminatory measures, provisionally estimated at 8 billion RMB, with the final amount subject to further clarification and adjustment. According to Reuters, Nexperia responded that it is aware of Wingtech's statement and understands that the relevant court has not yet held a hearing on the case. Nexperia also expressed regret that Wingtech appears to have no intention of seeking a solution beneficial to all stakeholders, including Wingtech's shareholders, and stated it will continue to urge Wingtech to engage in open dialogue. Reports indicate that Wingtech announced late last month that its 2025 net loss widened to 8.7 billion RMB, up from 2.8 billion RMB the previous year, due to the drag caused by the control dispute with Nexperia.