According to Nikkei Asia, Japanese semiconductor trading house Kaga Electronics will build a new Turkish factory, shifting a portion of the production of printed circuit boards from China and Southeast Asia.

Nikkei pointed out that the company already manufactures parts for air conditioners on a contract basis in Duzce, Turkey, but the facility is running at full capacity. The new plant will produce the circuit boards and assemble parts on them as the customer requests.

The new plant is expected to come online in 2022 and to be consolidated with the existing facility.

Kaga hopes to leverage Turkey's strategic location and expand orders from the Middle East and Europe. It will help diversify the company's production away from Asia, where supply chain disruptions have become a risk.

The investment will be millions of dollars, with production capacity to be raised gradually, according to company sources.