ASML is rumored to be planning to move out of the Netherlands

In recent years, ASML has emerged as one of the semiconductor industry’s most luminescent stars. As the world’s exclusive supplier of EUV and High-NA EUV lithography machines, ASML has ascended to the epicenter of global semiconductor technology, offering indispensable manufacturing tools for the production of chips smaller than 7nm.

According to De Telegraaf, ASML is contemplating relocation from the Netherlands, with France among the potential destinations for expansion or migration. A significant motive behind this consideration is the recent Dutch government’s likely tightening of labor immigration policies, which could severely impact ASML’s ability to recruit new talent and its future growth. Currently, ASML employs approximately 23,000 people in the Netherlands, with 40% of its workforce being non-Dutch nationals, including a considerable number of international students and employees as a primary labor source.

In response, the Dutch government has devised a special initiative dubbed “Beethoven,” aimed at addressing ASML’s concerns regarding the Netherlands’ business climate. This plan includes tax benefits for foreigners, labor immigration regulations, and political stability. Prime Minister Mark Rutte has personally spearheaded the team involved in this initiative, reflecting ASML’s significance to the Dutch economy and its stature in the global technology sector.

ASML aspires to significantly increase its production capacity in the coming years to meet market demands. The company plans to enhance its annual output to 90 EUV (Extreme Ultraviolet) lithography systems and 600 DUV (Deep Ultraviolet) lithography systems by 2025 to 2026, with the production capacity for High-NA EUV systems expected to reach 20 units by 2027 to 2028. Achieving such ambitious targets is challenging, especially in the current deteriorating business environment in the Netherlands, which has left ASML discontented.

ASML is not the only Dutch company contemplating relocating its operations abroad; in recent years, multinational corporations like Shell and Unilever have already moved their headquarters out of the Netherlands.