Core Viewpoint - Wentech Technology faces significant challenges due to the Dutch government's directive to freeze the operations of its subsidiary, Nexperia, citing national security concerns, leading to a drastic drop in its stock price and market value [2][5][6] Group 1: Company Situation - Wentech Technology's stock price peaked at 171.88 CNY per share in early 2020 after acquiring Nexperia, reaching a market capitalization of over 200 billion CNY, but has since plummeted to 41.83 CNY per share as of October 13, 2023 [2][5] - The Dutch government issued a directive on September 30, 2023, freezing Nexperia's global operations, affecting 30 entities, including subsidiaries and offices, for one year [5][6] - Wentech Technology is currently focused on legal avenues to protect its interests and maintain operational integrity amid these challenges [2][5] Group 2: Operational Impact - The freeze on Nexperia's operations is a result of an internal power struggle initiated by foreign executives, which has led to a temporary loss of governance rights for Wentech Technology [5][6] - The Dutch court's ruling has resulted in a significant alteration of decision-making processes and resource allocation within Nexperia, although daily operations continue [5][6] - The situation has raised concerns about the potential impact on Nexperia's market share and the broader power device market, with analysts predicting a likely decline in market position if the freeze persists [7][6] Group 3: Industry Context - The incident reflects a growing trend of "technology protectionism," particularly affecting Chinese enterprises in sensitive sectors like semiconductors, which are crucial for industries such as automotive and consumer electronics [6][7] - The Chinese Semiconductor Industry Association has expressed support for Wentech Technology, advocating for fair competition and a stable global supply chain [6][7] - The case highlights the need for Chinese companies to strengthen control mechanisms in cross-border mergers and acquisitions to avoid governance issues and external interventions in the future [7][6]