SHENZHEN-BASED Wingtech Technology may seek international arbitration and claim damages of up to US$8 billion if the issue of shareholder control over its Dutch chipmaking subsidiary Nexperia remains unresolved within six months, according to a company source.

At Wingtech’s fifth extraordinary general meeting of the year on Friday, chairman Yang Mu stated that the company will reiterate its stance and actively safeguard its rights during the second hearing to be convened by the Dutch Enterprise Chamber, a special division of the Amsterdam Court of Appeal, next month.

Wingtech temporarily lost control over Nijmegen-headquartered Nexperia following a ministerial order issued on national security grounds by the Dutch Ministry of Economic Affairs and Climate Policy on Sept. 30, and subsequent emergency measures imposed by the Dutch Enterprise Chamber.

Yang noted that as Nexperia Netherlands has cut off semiconductor wafer supplies to Chinese packaging factories, its China arm is conducting verification work on domestic suppliers to ensure supply chain stability. The verifications are expected to be complete between the first and second quarters of next year.

During the meeting, Wingtech appointed Gan Peizhong, a renowned legal professional, as an independent director. Yang said the appointment is expected to help the company protect its legitimate rights and interests.

Yang added that Wingtech held its first round of consultations this month with the independent directors and equity custodians of Nexperia appointed by the Dutch Enterprise Chamber, but no details can be disclosed due to confidentiality obligations binding both parties.

The ministerial order required Nexperia and its 30 global entities — including subsidiaries, branches, and offices — not to make any changes to their assets, intellectual property, business, or personnel for one year. The Dutch Enterprise Chamber issued a further ruling Oct. 7.

The Dutch court subsequently appointed an interim management team for Nexperia, which has since dismissed senior employees of Chinese nationality or background, blocked accounts and emails of Chinese staff, suspended salary and benefit payments to Nexperia China employees, disconnected the Chinese R&D center from the Dutch headquarters, and halted wafer supplies to Chinese factories.

Although the Dutch Minister of Economic Affairs announced the suspension of the administrative order last month, it has not been formally revoked, and the ruling of the Enterprise Chamber remains in effect. This means Wingtech’s control over Nexperia is still restricted.

On Dec. 22, a spokesperson for China’s Ministry of Commerce reiterated that the Dutch government should immediately revoke the administrative order and allow wafer supplies to resume as soon as possible.

(SD-Agencies)