(Bloomberg) -- Japanese chip gear-maker Kokusai Electric Corp. is expanding its staff in China in anticipation of an increase in demand from the world’s largest semiconductor market in 2024.

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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 US is erecting higher barriers on the export of advanced chips and chip gear to a geopolitical rival. Chinese companies have poured billions into factories for so-called legacy chips that US sanctions don’t prohibit, but remain critical components in everything from smartphones to electric vehicles.

“Countless small-scale fabrication plants are springing up like mushrooms in China,” Kanai, 67, told Bloomberg News in an interview. “The Chinese government is providing aggressive support to the industry for activities including the internet-of-things, smartphones and personal computers.”

Tapped to lead the company after KKR & Co. acquired it from Hitachi Ltd. in 2018, Kanai said he will prioritize shareholder returns, after making enough investments for production and next-generation tool development. Stock buybacks are an option the company will actively consider, he said.

Read More: US, Europe Growing Alarmed by China’s Rush Into Legacy Chips

China’s investments will be across memory, logic and power chips at 28-nanometers and larger, Kanai said. The country accounts for more than 40% of the Tokyo-based company’s revenue today, an unusually high level due in part to lackluster demand elsewhere. It expects that percentage will rise to just below 50% in coming months, though China’s historical contribution to Kokusai’s revenue was about 30%.

“We have locations in China only to provide after-sale services and have no plans to do production or research there,” Kanai said. “We will increase personnel to cover the local demand.”

Read more: Tokyo Electron Lifts Outlook After China Chip Growth Quickens