A Chinese court has frozen Nexperia’s stakes in four of its own subsidiaries

A court in Dongguan has frozen Nexperia’s shareholdings in four of its Chinese subsidiaries, worth about 2.14 billion yuan, with the order remaining in place until August 2029. The order took effect in the last week of August, Reuters reported.

The assets include Nexperia’s stakes in semiconductor operations in Wuxi and Shanghai, as well as a wholly owned subsidiary in Wuxi of its equipment business.

Together, the frozen shareholdings are worth roughly $300 million and will remain immobilised for up to three years while the dispute proceeds through the Chinese courts.

A freeze of this kind is a preservation order, not a judgment on the underlying dispute. It prevents a defendant from disposing of assets while a claim is being considered, which means Nexperia cannot sell or restructure the affected Chinese subsidiaries during the period covered by the order.

The case was brought by Wingtech, Nexperia’s Chinese owner, which sued...

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