China’s Wingtech is pursuing international arbitration against the Dutch state, seeking up to $8 billion in damages following the Netherlands’ seizure of chipmaker Nexperia, two sources familiar with the matter told Reuters.
The move escalates a high-profile dispute that has disrupted global automotive supply chains and could shift the legal battle away from Dutch courts, where a key hearing is scheduled for January 14. Wingtech owns Nexperia, which produces chips widely used in the automotive industry.
According to the sources, Wingtech served formal notice to the Dutch ministries of foreign affairs and economic affairs on October 15, triggering a six-month consultation period required before arbitration proceedings can formally begin. The Dutch government seized control of Nexperia on September 30, citing concerns that the company’s Chinese chief executive could relocate operations and intellectual property to China.
Although the Dutch state suspended the seizure in November, the intervention has already caused a breakdown between Nexperia’s European manufacturing operations and its Chinese packaging and distribution units, the sources said.
Wingtech is basing its claim on Article 10 of the Netherlands–China bilateral investment treaty, which stipulates that foreign investors should receive treatment equal to that of domestic investors and be compensated in the event of state interference. Under the treaty, any arbitration would be conducted at the International Centre for Settlement of Investment Disputes, part of the World Bank Group.
The Dutch economic affairs ministry and Wingtech both declined to comment on the arbitration move.
Steffen Hindelang, a professor of trade law at Uppsala University, who is not involved in the case, said the Dutch intervention appeared to meet the threshold for arbitration, though the eventual outcome would be uncertain. He noted that the Dutch state could argue its actions were lawful and did not materially damage Nexperia’s value.
However, Hindelang added that any form of state intervention “impacts the value of your investment and calls into question whether you can successfully divest.”
Nexperia reported a profit of $331 million on sales of $2.06 billion in 2024, underscoring the financial stakes involved in the dispute.
