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China condemns new US law aimed at boosting domestic semiconductor manufacturing
Source:
https://scmp.com/news/world/europe/article/3213164/dutch-chip-giant-asmls-suppliers-eye-southeast-asia-amid-us-china-tech-war Europe
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
ASML’s lithography systems can cost up to US$170 million each and are used to create the circuitry of semiconductors. Photo illustration: Reuters
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.
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.
The Dutch government has never granted ASML a licence to sell its most advanced machines to customers in China, following pressure from Washington, which is seeking to hobble China’s ability to make its own advanced computer chips and to slow down its military advances.
ASML’s lithography systems can cost up to €160 million (US$170 million) each and are used to create the circuitry of computer chips.
The Dutch government on Wednesday announced new restrictions on exports impacting ASML’s second-best range of chip-printing tools, which could lead to Chinese retaliation.
Among the companies on the mission is Neways, which helps ASML develop electrical control units, power controls and wiring systems for lithography systems, according to the company’s website. A spokesperson for Neways declined to comment.
ASML supplier NTS Group, which is a provider of precision mechanics tools, is another company that will join the business trip, Brainport said.
The other companies on the trip are Bestronics, AAE, BKB Precision, HQ Group, KMWE Group, Sempro, Sioux Technologies and VDL ETG, according to one of the documents and Brainport. The companies could not immediately be reached for comment on Friday.
Singapore is being considered as a potential location for regional headquarters, the note said.
ASML declined to comment.
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One person familiar with the organisation of the trip said one of the companies was in advanced talks with partners in Vietnam to build a factory.
A second company was also likely to invest there, the person said declining to name the firms and to be named because the information was confidential.
A second person involved in the organisation of the trip said that Malaysia was also a likely choice for new investment because some of the companies already have facilities there.