The Dutch government wants ASML to stay at home in the Netherlands
The Dutch government is reportedly in talks with ASML to keep the chipmaker rooted in the Netherlands despite worries about anti-immigration sentiments.
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The backstory: ASML Holding, a big player in the European tech scene, is all about making the chips that power up our gadgets. The Dutch chipmaker specializes in lithography systems, which are crucial for crafting chip circuits. This year, ASML's stocks skyrocketed, driven by the soaring demand for chips, especially pushed by the artificial intelligence (AI) boom.
In 2022, the US imposed restrictions on selling advanced chips and related equipment to Chinese firms without special licenses. This made other countries, including the Netherlands, think twice about doing the same. Last year, the Netherlands announced plans to tighten export rules on crucial chipmaking tools, including ASML's, to control sales abroad and protect national interests. But ASML also heavily relies on China as a top customer.
With chip demand going through the roof, manufacturers worldwide are ramping up production. The US and EU are backing this push with big subsidies, aiming to stay ahead of China in technology. For instance, the European Commission pledged 15 billion euros (US$16.3 billion) for semiconductor projects by 2030, while the US CHIPS Act provides over US$52 billion to the industry. Countries like India and South Korea are also offering tax incentives to boost chip production.
More recently: The Dutch government has been working on policies to tighten immigration, including to scale back a tax break for highly skilled immigrants and potentially limiting the number of foreigners who can attend Dutch universities. The thing is, ASML relies heavily on non-Dutch workers – about 40% of its 23,000 employees in the Netherlands are not Dutch. ASML CEO Peter Wennink has raised concerns about these immigration policies, noting the company's dependence on skilled foreign workers.
The development: The Dutch government is reportedly in talks with ASML to keep the chipmaker rooted in the Netherlands despite worries about anti-immigration sentiments. This update surfaced through De Telegraaf, a Dutch newspaper, citing unnamed sources. The government has called the initiative "Operation Beethoven," as per the report. Economic Affairs Minister Micky Adriaansens confirmed her meetings with ASML CEO Peter Wennink in The Hague to Reuters. She also expressed concern about the potential strain on the country's infrastructure as ASML looks to expand, hoping to talk about whether or not it's a problem that can be solved.
Key comments:
"I don't know if they would leave," said Dutch Economic Affairs Minister Micky Adriaansens. "They want to grow. And they want to grow in such an amount, it puts a pressure on our infrastructure."
"Some of these elements that made us a great company, those elements are under pressure," said ASML CEO Peter Wennink at an event in The Hague, on his concerns about the business climate in the Netherlands.
"The consequences of limiting labor migration are large, we need those people to innovate," said Wennink in January. "If we can't get those people here, we will go somewhere where we can grow."
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