China Freezes $318M in Nexperia Assets in Dispute with Wingtech

A Chinese court in Dongguan has ruled to freeze the assets of Dutch chipmaker Nexperia and its subsidiary ITEC, totaling approximately $318 million. According to filings by the Chinese parent company Wingtech Technology on the Shanghai Stock Exchange, the decision covers 100% stakes in five Chinese Nexperia subsidiaries, as well as ITEC's assets.

The asset freeze will remain in effect until August 2029, providing Wingtech additional leverage in its long-running dispute to regain control over Nexperia's business. In May of this year, Wingtech filed a lawsuit seeking $1.19 billion in damages against Nexperia, its parent company, ITEC, and three top executives. No court proceedings have begun as of yet.

The five frozen subsidiaries previously ceased complying with Nexperia's management in Nijmegen. The Dutch company accused them of refusing to pay for delivered wafers and opening unauthorized bank accounts. Nexperia stated that it has lost control over these entities, and the court has prohibited any transactions involving their assets for three years. Any resolution regarding the distribution of Chinese assets cannot be finalized until August 2029 without lifting the freeze.

Wingtech emphasized that the total frozen assets exceed its first-half 2026 revenue of 1.51 billion yuan. The company reported a net loss of 406 million yuan for the period. Wingtech's shares are at risk of delisting after auditor RSM could not confirm 57% of its assets, most of which are tied to Nexperia's restricted structures.

In an official statement, Nexperia noted that the decision applies exclusively to its Chinese subsidiaries operating outside the corporate governance of the parent company. The company stressed that current operations, management, and business processes will remain unaffected.