Dutch Court Orders Investigation into Semiconductor Giant Nexperia Amid Global Chip Supply Concerns

On Wednesday, a Dutch court launched an official investigation into the practices of Nexperia, a Netherlands-based semiconductor giant. The court also upheld a previous decision to suspend the company's Chinese CEO, Zhang Xuezheng, amid concerns over managerial conduct and policies.

The turmoil began after the Dutch government seized control of Nexperia in late September, citing national security issues. This move disrupted automotive manufacturers worldwide, heavily reliant on Nexperia's chips. Nexperia's attorney argued against the investigation, claiming it was caught off guard by the Dutch actions.

Following the upheaval, the court expressed concerns over internal conflicts of interest and changes to company strategy without consultation. Despite the Dutch government relinquishing control in November, tensions remain between Nexperia's Dutch headquarters and its Chinese operations, affecting global supply chains.