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ASML supplier Neways to build new plant in Malaysia

FILE PHOTO: Illustration shows ASML logo

AMSTERDAM (Reuters) - Neways, a key supplier to Dutch computer chip equipment maker ASML, said on Friday it will build a new plant in Klang, Malaysia.

The facility will begin production in the fourth quarter of 2024, giving the company additional capacity in Asia, where it also has a plant in Wuxi, China.

"Neways will focus on developing and producing advanced modules and cabinets for some of the world’s most renowned players in the semiconductor sector," the company said in a statement announcing the decision.

A spokesperson for Neways said they could not disclose the size of the investment, but the company intends to grow its operation in Malaysia to 200 employees.

"The choice for Malaysia is largely driven by the country having well-developed ecosystem ... including a well-established mature semiconductor supply chain," the company said.

Neways, which was de-listed in 2021 after being taken over by investment firm Infestos for 177 million euros ($191 million), makes electrical control units, power controls and wiring systems for ASML's lithography products.

($1 = 0.9255 euros)

(Reporting by Toby Sterling, Editing by Louise Heavens)