Invest International has provided a €15 million loan to Eindhoven-based technology company KMWE International. With this financing, the supplier to companies including ASML will significantly expand its production facility in Malaysia, where it has been active for more than 15 years. The loan is financed through the Dutch Trade and Investment Fund (DTIF), Invest International manages on behalf of the Dutch Ministry of Foreign Affairs, in collaboration with ABN AMRO. Thereby bridging a market financing gap and helping ensure the Dutch semiconductor industry can continue to grow successfully in the crucial Asian market.
While the core technology and high-value R&D of the Dutch semiconductor sector remain firmly anchored in the Netherlands, around 85% of its customers have operations in Asia. To remain internationally competitive, expanding production capacity in the region, close to customers and local talent, has become a strategic necessity.
Although a healthy Dutch technology company such as KMWE is able to work successfully with commercial banks for its domestic operations, financing a major expansion into an emerging market such as Malaysia often falls outside the risk appetite or scope of traditional lenders. Invest International therefore worked closely with KMWE’s principal bank, ABN AMRO, to develop a financing solution. The transaction demonstrates how public and private financiers can work together to support Dutch technology companies in their international expansion. While commercial banks support their clients through long-standing banking relationships, Invest International can, on behalf of the Dutch government, provide complementary financing for investments that might otherwise struggle to secure funding.
© photo credits: KMWE.
Melanie Maas Geesteranus, CEO of Invest International:
“The semiconductor industry is one of the crown jewels and key drivers of our future earning power. The Netherlands has built a globally leading position in this sector. Especially in a time of geopolitical tensions, it is essential that Dutch high-tech companies can continue to grow internationally. To maintain a leading position in the semiconductor industry, they must follow their customers and scale up in Asia. International expansion is not a one-way street: by helping KMWE grow in Malaysia, we strengthen the global position of Dutch technology while creating room in the Netherlands for new high-value innovations and technologies. This generates direct returns for the Dutch economy through jobs, competitiveness and strategic resilience. Where market financing falls short, we make this necessary growth possible, working closely with Dutch banks.”
Ben Meijer, CFO of KMWE:
“With the support of Invest International and ABN AMRO, we can take this essential step in our international growth journey. The global semiconductor supply chain continues to shift towards Asia. To meet rising demand, we need to invest in additional capacity close to our customers. Malaysia is a logical choice because of the strong growth of its high-tech and innovation industries. At the same time, the investment in and expansion of our Malaysian production facility creates additional room to further expand our high-value manufacturing capacity in the Netherlands. This expansion enables us to strengthen our position as a leading player in the global semiconductor value chain while reinforcing the foundation of our headquarters in Eindhoven.”
Rob Dekkers, Executive Director Mobility & Manufacturing Corporate Banking Clients at ABN AMRO:
“Financing Europe’s transitions lies at the heart of our strategy. Through our financing activities, we aim to contribute to a Europe that remains economically strong, technologically leading and strategically resilient. The semiconductor sector is a key industry for the digital transition. By enabling KMWE to scale internationally, we are not only strengthening a crucial link in the Dutch and European value chain, but also contributing to Europe’s technological sovereignty and competitiveness. This is exactly the type of investment through which we build tomorrow’s economic resilience today.”
© photo credits: KMWE.
About KMWE
KMWE develops, manufactures and assembles highly complex mechanical components, mechatronic modules and systems for the semiconductor, aerospace, medical technology and industrial equipment industries. Its customers include several leading players in both the semiconductor and aerospace sectors. The expansion in Malaysia will enable KMWE to increase its capacity for precision machining, module assembly and semiconductor-related manufacturing, while continuing to strengthen its activities in the Netherlands.
