ASML's Suppliers Eye Factories In Asia Outside China

Suppliers to Dutch chip-making machines giant ASML Holding NV are considering building plants in Southeast Asia instead of China amid political tensions between Beijing and the West, Francesco Guarascio and Toby Sperling reported for Reuters.

Photo Insert: The Dutch government has never granted ASML a license to sell its most advanced machines to customers in China.

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 organizing 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 200 high-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 told Reuters.

The dozen companies on the mission are almost all contractors to ASML, one of the world's top suppliers to semiconductor manufacturers such as TSMC, Samsung and Intel.

Some have production facilities in China.

The Dutch government has never granted ASML a license 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.

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