Analysis

East Asia rolls out welcome mat for Brainport as China loses allure

Paul van Gerven
Reading time: 2 minutes

Brainport companies are looking beyond China to expand manufacturing operations in Asia, but cooling relations between Beijing and the West play only a minor part in those plans.

The Dutch high-tech sector is actively scouting for plant locations outside China. A planned business trip to Malaysia, Singapore and Vietnam, organized by Brainport Industries and the Brabant Development Agency (BOM), is part of a “wider, long-term strategy to reduce exposure to China,” sources told Reuters. Companies said to participate in the business trip are AAE, Bestronics, BKB Precision, HQ Group, KMWE Group, Neways, NTS, Sempro, Sioux Technologies en VDL ETG. Most of them are suppliers of ASML.

Reuters suggests that China may have lost some of its allure as the West is erecting a silicon fence around the country. Following sweeping export restrictions imposed by the US in October, the Dutch government confirmed that it will impose additional export controls on ASML, most likely affecting the latest DUV immersion scanner models. Japan is still weighing which measures to take.

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