Kokusai Electric Expands in China Amid Anticipated Chip Demand Surge

Company plans to extend its 66% stock rally following its IPO, as China localizes chip production amidst U.S. export restrictions.

Kokusai Electric, a Japanese chip gear-maker, is expanding its staff in China in anticipation of an increase in demand from the world’s largest semiconductor market in 2024.
CEO Fumiyuki Kanai plans to expand local support teams in China to better serve clients and extend the 66% rally in its stock price since its IPO in October.
China's chip production is increasing due to efforts to localize production and U.S. restrictions on the export of advanced chips and chip gear.
Chinese companies are investing heavily in factories for legacy chips, which are not prohibited by U.S. sanctions and are critical components in a variety of devices.
Kokusai Electric's main customers are NAND flash memory makers, and the company plans to diversify its product portfolio and potentially make acquisitions to expand into adjacent markets.