ASML may be looking to leave the Netherlands — but the Dutch government is desperate to keep it there: Report

ASML EUV machine
(Image credit: ASML)

The Dutch government is secretly working on a plan to keep ASML, the world's largest maker of wafer fab equipment, in the Netherlands amid fears that the company may expand abroad, reports De Telegraaf. The operation, dubbed 'Beethoven,' aims to address ASML's concerns about the Dutch business climate, including issues with tax discounts for expats and labor migration regulations.

ASML is reportedly considering options for expansion abroad as it looks to dramatically increase its production capacity in the next few years. In particular, ASML intends to expand its manufacturing capacity to 600 deep ultraviolet (DUV) lithography systems a year by 2025 - 2026, 90 Low-NA extreme ultraviolet (EUV) litho machines a year by 2025 - 2026, and 20 High-NA EUV lithography tools a year by 2027 – 2028. De Telegraaf contends that ASML is reportedly dissatisfied with the current Dutch business climate. 

The company's significance extends beyond economics to strategic importance, as it is the sole producer of Low-NA and High-NA EUV tools, which are crucial for making chips using leading-edge process technologies. In addition, ASML commands the lion's share of DUV litho tools. As various countries look to onshore chip production, demand for ASML's products will inevitably increase, which is at least one reason it's expanding its production capacity. 

A significant portion of ASML's workforce, about 40%, consists of labor migrants. The company has expressed concerns about the potential tightening of labor migration rules by a new right-wing cabinet, which could hinder its ability to hire new personnel and grow. While the company's business model can be considered flexible, it should be noted that only 7% of its workers are 'flex workers' and 93% are its own personnel. 

Prime Minister Mark Rutte is personally involved in the efforts to retain ASML in the country, indicating how important it is for the Netherlands to ensure that the bulk of ASML operations and its headquarters remain in the country. The company's decision to stay or move could have substantial implications for the Dutch economy and its position in the global tech industry. 

The broader context of ASML's deliberations reflects ongoing worries about the Dutch business climate. Factors such as the tax environment, regulatory implementation, and political stability are influencing companies' decisions to consider relocating activities abroad. De Telegraaf notes that in recent years, multinationals like Shell and Unilever relocated their headquarters from the Netherlands.

Anton Shilov
Contributing Writer

Anton Shilov is a contributing writer at Tom’s Hardware. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends.

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  • TechLurker
    I wonder if ASML has plans to expand further in the US and Japan. Esp. to get in on some of the US subsidies being given out right now to expand chip R&D and manufacturing. Same for Japan.
    Reply
  • peachpuff
    A significant portion of ASML's workforce, about 40%, consists of labor migrants.
    Leaving the country because you can't get cheap labor? Color me shocked...
    Reply
  • coolestcarl
    peachpuff said:
    Leaving the country because you can't get cheap labor? Color me shocked...
    Im sorry to burst your bubble, but high skilled labour is not cheap. Here in Wales companies have turned down opening high tech offices because the number one problem is lack of truly high skilled labour. The Welsh government have offered generous subsidies and yet there are no takers. And this industry is very high skilled. Its no surprise that Indians are the richest ethnic group in the US. A huge number of them are employed in high tech jobs. The US congress even recently (within the last few months) passed a resolution acknowledging the contributions of Indians, in particular those from high tech fields, that have driven the US engineering prowess over the past decades. Immigrants does not always mean cheap. If its for manual labour, I agree. But certainly not in the high skills arena. China regularly tries to poach "immigrant" staff for its high tech endevours. I personally know of approaches that have been made with BIG money to various top tier Indian universities in order to claim this very tiny pool of talent.
    Reply
  • Newoak
    The western media sees every article as an opportunity for leftist propaganda. The reality is most high tech companies have been moving to south east asia, every single nation of which allows zero immigrants in, outside of Singapore which clearly prefers south east asians.
    The west and its universities inspire none to invest in the future of teaching diversity students how gender is a social construct. In G-d I trust.
    Reply
  • Co BIY
    It's very hard for such a huge business with global reach to stay in such a small country.

    The people in the Netherlands are very highly educated but it is a small country of only 17.5 Million people.

    "Ultimately, we can only grow this company if there are enough qualified people. We prefer to do that here, but if we cannot get those people here, we will get those people in Eastern Europe or in Asia or in the United States. Then we will have to go there,"

    Wennink was speaking purely about where ASML can grow and expand in the future. He emphasized he was not referring to the Veldhoven company possibly moving headquarters.

    https://nltimes.nl/2024/01/25/asml-will-expand-outside-netherlands-dutch-sharply-restrict-immigration
    Reply
  • Foeke
    peachpuff said:
    Leaving the country because you can't get cheap labor? Color me shocked...
    They don't need cheap labor. They need the very best. And many of them.
    Non of them earn less then 6 digits.
    Just like many other western countries the Dutch have way to many elderly. We need immigants to keep our way of living.
    Reply
  • Foeke
    Funny detail, ASML started as part of Phillips. Phillips saw it as a distraction and cut it of.
    With hindsight it was probably Phillips move out of Eindhoven to Amsterdam that led to their downfall.
    They completely underestimated the supporting structures that grew around them.
    It would be very ironic if ASML didn't learn from this.
    Reply
  • parkerthon
    peachpuff said:
    Leaving the country because you can't get cheap labor? Color me shocked...
    What paltry sum do these immigrants make exactly? Have you considered that Taiwan isn’t some back water under developed country and has the most advanced semiconductor manufacturing economy in the world that the dutch couldn’t even dream of? The home of all the customers and manufacturing this company sells their insanely advanced technology? This isn’t bussing some poor people over to be janitors. This is cutting edge technology manufacturing engineering work that the entire chip making industry’s advancement is currently paced by. Could that question be any more loaded with western arrogance?

    Also, obligatory South Park.
    Reply
  • bit_user
    TechLurker said:
    I wonder if ASML has plans to expand further in the US and Japan. Esp. to get in on some of the US subsidies being given out right now to expand chip R&D and manufacturing. Same for Japan.
    I know they already have R&D offices in the US. Given that they have 7 locations in Japan, it's probably a good bet they have some R&D there, too.

    Their website claims they have 39k employees across 60 locations.
    https://www.asml.com/en/careers https://www.asml.com/en/company/about-asml/locations
    BTW, I think this article is about the location of their headquarters. You don't need to be US-headquartered to receive US CHIPS grants. Recall that TSMC and Samsung were among those competing for it.
    Reply
  • bit_user
    Newoak said:
    The west and its universities inspire none to invest in the future
    I had to LOL at you starting such a post by complaining about propaganda! The science & tech universities in the west are still some of the best in the world, which is why people still keep coming from around the world to study at them.
    Reply