Mar 13, 2023

Suppliers to Dutch chip-making machines giant ASML Holding NV are considering building plants in Southeast Asia as opposed to China amid ongoing political tensions between Beijing and the West, according to details provided by Reuters. Officials from a dozen tech companies are set to visit Vietnam, Malaysia, and Singapore next week, according to a note from the Brabant Development Agency, a Dutch public body involved in organising the trip. "The majority of the companies are joining because they are considering to expand/setup production locations in either Vietnam or Malaysia," said the note prepared by the agency together with Brainport Industries, which represents a total of 200 high tech manufacturing companies based near the Dutch city of Eindhoven. The possible investments are therefore part of a wider and long-term strategy aimed at firms seeking to reduce their exposure to China. The dozen companies taking part in the mission are almost all contractors to ASML, one of the world's top suppliers to semiconductor manufacturers such as TSMC, Samsung, and Intel. Most notably, some of them already have production facilities located in China. The companies participating in the mission include popular names such as Newways, Bestronics, AAE BV, BKB Precision, HQ Group, KMWE Group, Sempro, Sioux Technologies, and VDL ETG. ASML represents one of the leading suppliers in terms of chip manufacturing. The company's lithography system, which can cost up to US$170 million, is used in order to produce high-end chips, whilst ASML's partners include major companies such as Intel, Samsung, and TSMC. Source: VOV