This article first appeared on GuruFocus.
Ruby Yang, chairman of Wingtech Technology, has continued to put pressure on the Dutch government, warning that unless control of chipmaker Nexperia is returned to its Chinese parent company, the global semiconductor supply chain may face long-term disruptions. In his first international interview since the dispute broke out in October, Yang accused Dutch authorities and Nexperia’s interim management of violating shareholder rights, breaching a 2001 bilateral treaty with China and seeking personal gain from the crisis. She claimed that a Dutch court’s freeze on control of Wingtech led to a dangerous breakdown in coordination between Nexperia’s European wafer supplies and its Asian final assembly lines.
The fallout has already reached automakers: Honda (NYSE: HMC ) recently said production in Japan and China may be halted due to chip shortages. At the heart of the disagreement is a court-ordered suspension of Wingtech founder Zhang Xuezheng as CEO, which halted wafer shipments from the Netherlands to China and split the business into two unrelated businesses. Yang believes that the wafer production shutdown is unilateral and unreasonable, and places the blame squarely on Nexperia’s Dutch entity. The Chinese unit, which previously handled about half of Nexperia’s output, is now scrambling for alternative wafer sources, while the Dutch side is expanding its processing capabilities in Malaysia, a move Yang explained as part of a broader effort to decouple from China.
Wingtech is appealing the court ruling and said it may seek international arbitration if it fails to regain control within six months, with a potential claim worth $8 billion. The dispute also involves a stalled fab project for Shanghai Wentian Semiconductor, which Yang said had been approved by Nexperia executives who are now accusing Wingtech of wrongdoing. While Nexperia denies accusations of self-interest and mismanagement, it called on both sides to resume constructive dialogue. Yang insisted that the crisis could still be resolved quickly if shareholder control was restored, and reiterated her intention to lead Nexperia to greater success.
