(Yicai) Dec. 29 -- Wingtech Technology may seek international arbitration and damages of as much as USD8 billion if the issue of shareholder control over its Dutch chipmaking unit Nexperia is not resolved in six months, a source at the Chinese company told Yicai.

Speaking at Wingtech's fifth extraordinary general meeting of the year on Dec. 26, Chairman Yang Mu the firm will restate its position and defend its rights at a second hearing next month before the Dutch Enterprise Chamber, part of the Amsterdam Court of Appeal, according to the insider.

Wingtech temporarily lost control over Nexperia, headquartered in Nijmegen, following a ministerial order issued on national security grounds by the Netherlands’ Ministry of Economic Affairs and Climate Policy on Sept. 30 and subsequent emergency measures imposed by the Dutch Enterprise Chamber.

Yang said that after Nexperia Netherlands halted wafer supplies to its Chinese packaging plants, Nexperia China began validating domestic wafer suppliers to shore up the supply chain and expects to complete the process between the first and second quarters of next year.

Wingtech also named Gan Peizhong, a renowned legal professional, as an independent director at the extraordinary general meeting, with Yang noting that the appointment is expected to help the company protect its legitimate rights and interests.

Yang said Wingtech held an initial round of talks this month with the independent directors and the equity custodians appointed by the Dutch Enterprise Chamber, adding that details of the discussions cannot be released yet  as both sides are bound by confidentiality.

The ministerial order required Nexperia and its 30 global entities, including subsidiaries, branches, and offices, not to make any changes to their assets, intellectual property, business, or personnel for a year, with the Dutch Enterprise Chamber issuing a further ruling on Oct. 7.

The interim management the Dutch court appointed then dismissed senior employees who were Chinese or of Chinese heritage, blocked China-region staff accounts and email access, halted salary and social security payments for staff in China, severed the China research and development center’s links with Nexperia’s Dutch headquarters, and halted wafer shipments to Chinese plants.

Although the Dutch economic affairs minister announced the suspension of the administrative order last month, it has not been revoked and the Enterprise Chamber’s ruling remains in effect, limiting Wingtech's control over Nexperia.

On Dec. 22, a spokesperson for China's commerce ministry reiterated that the root cause of the Nexperia dispute stems from the inappropriate administrative intervention by the Dutch government in corporate affairs.

To end global concerns over chip shortages, the spokesperson urged the Dutch government to revoke the administrative order immediately, thereby ensuring Nexperia Netherlands’ former executives withdraw their Enterprise Chamber lawsuits and allowing constructive negotiations.

Editors: Tang Shihua, Martin Kadiev