Japanese chip gear-maker Kokusai Electric is expanding its headcount in China in anticipation of an increase in demand from the world’s largest semiconductor market in 2024.
Chief Executive Officer Fumiyuki Kanai, who presided over the company’s initial public offering in October, foresees sustained investment in capacity in China and plans to expand his local support teams there to better serve clients. Kokusai is seeking to extend the 66% rally in its stock price since its IPO less than two months ago.
China’s buildup is driven in part by efforts to localize chip production at a time the U.S. is erecting higher barriers on the export of advanced chips and semiconductor fabrication equipment to a geopolitical rival. Chinese companies have poured billions into factories for so-called legacy chips that U.S. sanctions do not prohibit, but remain critical components in everything from smartphones to electric vehicles.