Dutch chip giant ASML’s suppliers eye Southeast Asia amid US-China tech war
- Tech company representatives will visit Vietnam, Malaysia and Singapore next week as they consider building plants there to reduce exposure to China
- The Dutch government has unveiled new restrictions on exports impacting ASML’s second-best range of chip-printing tools, which could lead to Chinese retaliation
Suppliers to Dutch chip-making equipment giant ASML Holding are considering building plants in Southeast Asia instead of China amid political tensions between Beijing and the West, according to two sources and documents seen by Reuters.
Officials from a dozen technology 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/set up production locations in either Vietnam or Malaysia,” said the note prepared by the agency together with Brainport Industries, which represents 200 hi-tech manufacturing companies based near the Dutch city of Eindhoven.
The possible investments are part of a wider, long-term strategy to reduce exposure to China, two people familiar with the plan said.
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The dozen companies on the mission are almost all contractors to ASML, one of the world’s top suppliers to chip manufacturers such as Taiwan Semiconductor Manufacturing Co, Samsung Electronics and Intel Corp. Some have production facilities in China.