Japanese chip equipment supplier Ferrotec reorganizes supply chain to enter US and Chinese markets

On November 27, according to the Financial Times, after the United States introduced new chip export control measures, Japanese chip equipment supplier Ferrotec has begun to reorganize its supply chain and factories, aiming to enter the US and Chinese markets.

The CEO of Ferrotec Group said the company is accelerating plans to expand production outside of China in response to requests from U.S. customers such as Lam Research and Applied Materials.

"In the future, we hope to not only manufacture in China, but also in Japan, Malaysia, and even the United States." The person in charge of Ferrotec further stated that the Chinese market will grow in the future, so it will be produced in China to meet the needs of the Chinese market.

According to reports, Ferrotec plans to maintain product manufacturing in China and will diversify its supply chain in the next two years.

Separately, an executive at a U.S. maker of chipmaking equipment said it would no longer purchase certain Ferrotec components made in China. The executive also cited geopolitical uncertainty as one of the reasons why Ferrotec is investing $120 million in a new factory in Malaysia, which is expected to begin operations next September.