By Gabby Chen

(JW Insights) May 24 -- KMWE, a key upstream supplier for Dutch semiconductor equipment giant ASML, has opened a plant in China, producing the same products as KMWE's facility in Malaysia, but with a specific focus on catering exclusively to the Chinese market, reported Dutch technology media outlet Bits&Chips on May 22.

The move comes as a strategic response to navigate around export restrictions on semiconductor technology.

No detailed information on the plant has been disclosed so far.

Edward Voncken, director of KMWE, commented, "Without the trade conflict between the US and China, we probably wouldn't have done that."

The US announced several new restrictions on the export of semiconductor-related technology last October, affecting suppliers of semiconductor equipment manufacturers like KMWE, which supplies to ASML and Besi, among others.

There is a growing demand from Chinese companies and the government to source components for electronics and semiconductor manufacturing equipment from local suppliers in China. This is to prevent more nasty surprises and to boost the domestic semiconductor industry, said the Bits&Chips report.