The Chinese semiconductor company’s Shanghai-listed shares plunged 10% on Monday to a one-month low
[AMSTERDAM/SHANGHAI] Chinese semiconductor company Wingtech said on Monday (Oct 13) that it will take actions to protect its rights and will seek government support, after Dutch authorities ordered an intervention at its Netherlands-based subsidiary Nexperia.
On Sunday, the Dutch government said that it is intervening at Nexperia, which manufactures computer chips for the car and consumer electronics industries, due to worries about the possible transfer of crucial technology to its parent Wingtech.
The Dutch Ministry of Economic Affairs said its intervention was in reaction to administrative shortcomings at the company and would allow it to reverse or block harmful decisions while the company’s regular production may continue.
The Dutch move against US-sanctioned Wingtech came after the Trump administration dramatically expanded prohibitions late last month to include subsidiaries of blacklisted companies.
Wingtech said in a stock exchange filing that its control over Nexperia will be temporarily restricted due to the Dutch order and court rulings, affecting decision making and operational efficiency.
“The company is actively consulting with international law firms on legal remedies and strategies, and will take all necessary actions to protect the legitimate rights and interests of the company and shareholders,” Wingtech said.
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“We are proactively engaging with relevant government departments to seek their support.”
Wingtech’s Shanghai-listed shares plunged 10 per cent on Monday to a one-month low.
A Nexperia spokesperson said on Sunday that the company adheres to “all existing laws and regulations, export controls and sanction regimes.”
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Nexperia is one of the world’s largest makers of simple computer chips such as diodes and transistors.
The Dutch Economic Affairs Ministry described the intervention, under a law intended to ensure critical goods remain available during an emergency, as “highly exceptional” and noted it could be subject to a court appeal. REUTERS
