Chinese Tech Company Sues Dutch Chipmaker for $1.2 Billion in Damages

A Chinese technology company has initiated fresh legal proceedings against a Dutch semiconductor firm, seeking massive financial compensation in a dispute that could reignite international tensions over chip manufacturing control.

Wingtech Technology, along with a subsidiary, has taken legal action against Nexperia B.V. and five additional entities, claiming that restrictions on its authority over the Dutch chipmaker continue to impact operations. The company is provisionally requesting 8 billion yuan, equivalent to approximately $1.18 billion, to cover economic damages.

The legal filing was accepted by a court in China’s southern Guangdong province, according to documents submitted to the Shanghai Stock Exchange on Friday.

Nexperia responded to the lawsuit announcement, stating: “Nexperia has taken note of Wingtech’s announcement and understands that the relevant court has not opened the case for trial.”

The Dutch company expressed disappointment with the legal approach, adding: “We regret that Wingtech appears not to be interested at all in reaching a solution that would be beneficial to all stakeholders, including Wingtech’s shareholders, and continue to urge Wingtech to engage in an open dialogue.”

This renewed legal battle traces back to events that unfolded last September, when Dutch authorities assumed control of the Netherlands-based semiconductor company. Officials cited concerns that the firm was relocating operations and transferring intellectual property to China. The Dutch government subsequently reversed this decision.

The ongoing dispute has significantly impacted Wingtech’s financial performance. The company reported that its net losses expanded to 8.7 billion yuan in 2025, compared to a 2.8-billion-yuan loss the previous year, with the Nexperia control conflict contributing to the deteriorating results.

Earlier this year in January, Wingtech pursued international arbitration proceedings, seeking damages that could reach as high as $8 billion.

The current legal action references China’s anti-foreign sanctions law, which Beijing has been implementing with increased strictness. Wingtech Technology and Yucheng Holdings claim they are legally entitled to seek compensation under this framework.

In Friday’s court filing, Wingtech argued: “The defendants’ unlawful implementation of, or assistance in implementing, the discriminatory restrictive measures of the Dutch side has caused the plaintiffs irreparable and enormous losses.”

This latest lawsuit represents a potential escalation in a conflict that had remained relatively dormant since late last year. At that time, China agreed to reduce export restrictions on Nexperia semiconductor products in exchange for the Netherlands postponing its plans to seize operational control of Nexperia from Wingtech.