The conflict between China’s Wingtech Technology and Dutch chipmaker Nexperia, its subsidiary, is no longer limited to control of the company. Wingtech has rejected a plan by Nexperia’s court-appointed administrators to split the company into two separately managed businesses, one in China and one international, and also rejected the $2 billion damages lawsuit the Dutch side has filed against it, according to state-run China Daily.
The Wingtech-Nexperia clash in 30 seconds
- Nexperia’s administrators propose the “Two Circles” plan to separate the Chinese business from the international one.
- Wingtech would keep China and become a minority holder in the overseas business, which would pass to an outside investor.
- Wingtech rejects the plan and a $2 billion lawsuit from the Dutch subsidiary.
- Both sides are already building parallel supply chains in Asia.
Nexperia, which makes basic chips widely used in the automotive and electronics industries, has spent more than a year at the center of a political standoff that began when the Dutch government stepped into its management in late 2025, prompting China to restrict exports from its Dongguan plant. We’ve already covered how that clash exposed Europe’s vulnerability in chips and how Beijing blamed the Netherlands for the risk of another global supply crisis.
The “Two Circles” plan and the lawsuit
According to China Daily, the restructuring plan from the court-appointed administrators would split Nexperia into two companies. Wingtech would keep the China business, while an outside investor would take control of the international business, where Wingtech would remain as a minority shareholder. Wingtech said on Wednesday it rejects the proposal, though it remains open to constructive negotiation.
The Chinese company also rejects the $2 billion lawsuit that Nexperia’s Dutch subsidiaries have filed against Wingtech, its founder Zhang Xuezheng, and two Chinese subsidiaries. Nexperia accuses them of breaching internal agreements and disrupting the business by building an independent supply chain. Wingtech says that as of Wednesday it had not yet received formal notice of the proceedings. The article does not include Nexperia’s or the administrators’ version, and the full text of the plan is not public.
Two parallel supply chains
Before the conflict, Nexperia ran an integrated model: wafers were manufactured mostly in Germany and the UK, while assembly and testing were largely done in Dongguan, in southern China. Now each side is building its own pipeline. The Chinese unit is strengthening its domestic wafer supply and its packaging and testing capacity, while the international business is seeking alternatives and expanding agreements in India, Malaysia and the Philippines.
Experts cited by China Daily, both Chinese, agree that this duplication will come at a cost. Investor Guo Tao believes control is now just the surface of the problem and that the risk of asset impairment and customer loss will push both sides toward a deal. Jian Junbo, director of Fudan University’s Center for China-Europe Relations, warns the case could undermine Chinese companies’ confidence in investing in the Netherlands and Europe. These assessments should be read bearing in mind that the source is Chinese state media and does not include the Dutch position.
Frequently Asked Questions
What is the “Two Circles” plan for Nexperia?
A proposal from court-appointed administrators to split Nexperia into a Chinese business, kept by Wingtech, and an international one controlled by an outside investor.
What is Nexperia claiming from Wingtech?
$2 billion in damages for breaching internal agreements and building an independent supply chain.
How does Wingtech respond?
It rejects both the plan and the lawsuit, though it says it is open to negotiation and claims it has not been formally notified.
Sources:
This article is also available in Spanish: «Wingtech rechaza el plan para partir Nexperia en dos y la demanda de 2.000 millones», on revistacloud.com.
