Dutch government in panic mode over keeping ASML in the country
- Reference: 1709731325
- News link: https://www.theregister.co.uk/2024/03/06/dutch_asml_visas/
- Source link:
[1]Reports in The Netherlands say the government has even set up a task force dubbed "project Beethoven" to keep Europe's most valuable corporate technology asset from expanding outside of the country in response to policies such as those targeting immigration.
The Dutch government has not confirmed or denied the reports, and ASML is keeping similarly tightlipped.
[2]
ASML, which last year had a market value of $280 billion, is a significant player in the Dutch economy. It is a key developer of photolithography equipment used in chip manufacturing, and currently the only one in the world supplying the most advanced extreme ultraviolet (EUV) gear.
[3]
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It is concerned about being able to continue to operate successfully in The Netherlands in light of government policies. Some of these are to curb immigration, including moves to end tax breaks for highly skilled foreign employees that are being implemented by the current administration.
According to the [5]NL Times , CEO Peter Wennink said in an interview in January that ASML might be forced to move some activities abroad if it could not bring enough people with the right skills to its site in The Netherlands.
[6]
"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," he is reported to have said.
But it appears that being able to hire the right personnel is not the only concern. Problems with electricity grid congestion affecting industrial power supplies and attempts to limit nitrogen emissions are also said to be issues raised by the company.
ASML is believed to be considering France as an option for expanding operations, and it seems unlikely it would move the headquarters near Eindhoven away from The Netherlands. However, even the suggestion that it might set up some base outside the country is said to have prompted the government to take action.
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The Dutch Ministry of Economic Affairs did not respond to our requests for clarification, but a spokesperson told the [8]Reuters new agency that it could not discuss policies toward specific companies.
[9]Chip lobby group SEMI to EU: Export restrictions should only be used in self-defense
[10]ASML sees semiconductor upturn ahead, but China export restrictions are a risk
[11]Europe benched in high tech 'Champions League' says ASML
[12]US reportedly pushed ASML to cancel chipmaking kit for China early
ASML told The Register that it could not comment on the claims made in the Dutch press, but a spokesperson said there are concerns about the Dutch business climate which include the ability to attract and retain the right people, and that ASML is not the only company to have raised these concerns.
Sales of ASML's equipment rose by 30 percent to €27.6 billion ($29.5 billion) during 2023 as customers rushed to invest in new tools, and the company finished the year with a backlog of €39 billion ($41.7 billion) in orders.
ASML warned in its [13]latest annual report that it faces geopolitical risks, such as the new export controls on its semiconductor equipment that the Dutch government introduced last year.
The company now has to apply for Dutch export licenses for its most advanced DUV and EUV gear, plus US government licenses for some systems destined for China. The latter market accounted for over a quarter of its net sales last year. ®
Updated to add at 1613 UTC on March 6:
The Dutch Ministry of Economic Affairs contacted us to say: "On a daily basis the government has meetings with companies varying from startups to multinationals in the interests of Dutch society, the economy, employment and future prosperity. This includes of course ASML which is a major Dutch company with a major presence and impact on the global tech markets. Something the Netherlands is proud of.
"Due to their ongoing growth demands, including in terms of enough housing for employees and up-to-date infrastructure, the government and the company exchange views on these and other subjects on a regular basis including suitable economic policies, innovation, business climate and economic security.
"We do not provide any further detailed information about the content and nature of the contact with individual companies due to business confidentiality and stock market sensitivity."
Get our [14]Tech Resources
[1] https://www.telegraaf.nl/financieel/1492170069/geheime-operatie-kabinet-onder-codenaam-beethoven-om-dreigend-vertrek-asml
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZeihOM0SVtuT7XcQwnXBHgAAAQM&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZeihOM0SVtuT7XcQwnXBHgAAAQM&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZeihOM0SVtuT7XcQwnXBHgAAAQM&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://nltimes.nl/2024/01/25/asml-will-expand-outside-netherlands-dutch-sharply-restrict-immigration
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZeihOM0SVtuT7XcQwnXBHgAAAQM&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZeihOM0SVtuT7XcQwnXBHgAAAQM&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[8] https://www.reuters.com/technology/dutch-government-scrambling-keep-asml-netherlands-newspaper-2024-03-06/
[9] https://www.theregister.com/2024/03/06/chip_semi_eu/
[10] https://www.theregister.com/2024/02/14/asml_sees_semiconductor_upturn_ahead/
[11] https://www.theregister.com/2024/01/16/eu_champions_league_asml/
[12] https://www.theregister.com/2024/01/02/us_pushed_asml_to_cancel/
[13] https://www.theregister.com/2024/02/14/asml_sees_semiconductor_upturn_ahead/
[14] https://whitepapers.theregister.com/
Hmm
Reports in The Netherlands say the government has even set up a task force dubbed "project Beethoven"
So government create a problem. Government set up a task force (likely to cost more) to put a patch over the problem. Probably to cause another problem. And this isnt a shot at the Dutch, this is government.
The deindustrialisation of the West
Problems with electricity grid congestion affecting industrial power supplies and attempts to limit nitrogen emissions are also said to be issues raised by the company.
More proof that there's a concerted effort to undermine Western industry and food security all in the name of green targets. It's not like these emissions, be it CO2 or N2, won't be released, they'll just happen in jurisdictions with less stringent rules.
It's time for the ordinary people to start questioning who really benefits from the implementation of these policies.
Re: The deindustrialisation of the West
The German industrial sector is in trouble too. Energy prices have skyrocketed after the closure of their last nuke stations and the removal of cheap roosian gas from the equation.
The UK screwed over its heavy industry in the 80s so we're fine!
Re: The deindustrialisation of the West
If we're talking about Nuclear, 22 countries just signed an agreement to triple nuclear capacity. US, Bulgaria, Canada, Czech Republic, Finland, France, Ghana, Hungary, Japan, Republic of Korea, Moldova, Mongolia, Morocco, Netherlands, Poland, Romania, Slovakia, Slovenia, Sweden, Ukraine, United Arab Emirates, and the UK
https://www.iaea.org/newscenter/news/nuclear-energy-makes-history-as-final-cop28-agreement-calls-for-faster-deployment
I see the Netherlands are in there but unless they use the new modular reactors it'll take years before they'll get it.
If Germany continues to de-industrialise maybe they won't need electricity in future. They'll all have to stick with cold showers.
100% agree.
European manufacturing going down the pan because of bonkers green targets.
Meanwhile in the rest of the world everyone plays lip service but ignores them.
>" end tax breaks for highly skilled foreign employees"
They still have this?
In the late 90s when I was looking at a job at ESA there was an insane deal where foreigner tech workers could choose to just pay flat 20% tax for 10years (IIRC) in the Netherlands
So ASML complaining isn't woke green euro-hippie. It's like Goldman-Sachs claiming it's going to move to Canada if the Carried Interest tax credit on Hedge Fund managers is revoked.
"policy decisions that would restrict its ability to hire skilled staff"
Where's the problem ? Just make a policy decision that the policy doesn't affect ASML.
Administrative busybodies have painted themselves into a corner and can't see a way out. Make a way out.
Assuming the media are correct, there has indeed been a worker shortage for a while.
In addition, there were and are still considerable delays in construction of roads and buildings due to permits not being issued, with the cited reason being related to insufficient room in the N2 budget.
The remark about energy prices is also true. This can be attributed to EV/solar/heatpump subsidies, giving the coal and nuclear industry a hard time, running out of natural gas in the north of the country, the the choice to stop purchasing natural gas from an incredibly affordable supplier...
I don't get this ASML stuff, it all just sounds like weird whispering to me.