This is the plan of the Government of the Netherlands to keep ASML happy and retain

In the Netherlands, 2024 will be remembered as the year in which tensions between ASML and the Dutch Government reached their peak. This company owned by Philips is one of the largest technology companies in Europe and plays a fundamental role in the semiconductor industry because it is the only one that manufactures the extreme ultraviolet (UVE) lithography equipment used to produce cutting-edge integrated circuits.

A few months before leaving his position as CEO of ASML, Peter Wennink predicted that his company will lose approximately 15% of its sales in China due to the sanctions that came into effect on November 16, 2023. Today the helm of ASML Christophe Fouquet has it firmly in his grasp. And his short and medium-term outlook is not exactly optimistic because he is convinced that the US will continue to exert pressure on its partners to further tighten the sanctions that seek to stop the development of the Chinese integrated circuit industry.

Netherlands can’t afford to lose ASML

At the end of last September, Dirk Beljaarts, the Dutch Minister of Economy, met in Washington DC (USA) with Don Graves, the Undersecretary of Commerce and the right hand of Gina Raimondo, the US Secretary of Commerce. According to SCMP, during their conversation Beljaarts underlined the importance of China to the Netherlands as a trading partner and stressed the fact that ASML should be allowed to “do business as freely as possible.”

The Minister of Economy of the Netherlands confessed that the purpose of his conversation with Don Graves was to promote bilateral trade and not to negotiate more restrictions on exports, which, on the other hand, do not fall under his competence. Even so, it is evident that there was a change of strategy in the Government of the Netherlands, which Beljaarts represented during his stay in the United States. “China is an important trading partner, as is the US and many other countries in the world. We have to protect our own economy and we must ensure that our companies can do business as freely as possible,” Beljaarts said during his meeting with Graves.

However, the turnaround of the Dutch Administration regarding its relationship with ASML began a few months earlier. At the beginning of last March. The Dutch government is fully aware that it cannot let its largest technology company leave its home country. At that time, some media reported that ASML’s management leadership was considering the option of moving the company to France, and this possibility triggered the implementation by the Government then led by Mark Rutte of ‘Operation Beethoven’.

Today, almost ten months later, this plan is still underway. And in better shape than ever. Reuters has confirmed that this project will definitely raise 2.5 billion euros with the purpose of improving housing, transport, education and electricity supply in the Eindhoven region, which is very close to the ASML headquarters, which is located in Veldhoven . Many of the company’s employees reside in Eindhovenso improving infrastructure can have a very positive impact on your quality of life.

Interestingly, ASML and Philips will contribute, together with other Dutch technology companies, 230 million euros to this plan. This measure may not seem enough to retain ASML, but in all likelihood what the Government of the Netherlands is seeking is to create the right breeding ground for this important company to feel well treated and not contemplate the possibility of leaving its country of origin. .

Image | ASML

More information | Reuters

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