ASML is apparently considering building its first production facilities for lithography systems outside the Netherlands. According to media reports, the leadership is open to expansion to France, for example – depending on political developments, a relocation of existing production capacity would even be conceivable.
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According to De Telegraaf, the reason is primarily right-wing politics that are directed against migrants. The newspaper is said to have several sources close to the company. In recent years, tax advantages that were intended to attract people from abroad have already been reduced: since 2018, they only apply for five instead of eight years after immigration. 30 percent of your income does not have to be taxed. At the turn of the year 2024, the Netherlands introduced a salary cap of 233,000 euros per year for the regulation, above which it no longer applies. Since ASML is also looking for highly qualified engineers, the limit at the manufacturer is relevant.
The right-wing populist politician Pieter Omtzigt has already proposed further reductions in tax allowances in the Second Chamber of the Dutch Parliament. In general, there is currently uncertainty because no new cabinet capable of governing is being formed. According to De Telegraaf, ASML fears that the influence of right-wing politics could grow in the next cabinet.
Other issues are also known in this country, including a tight housing market.
“Be on your guard”
In January, ASML boss Peter Wennink publicly criticized right-wing politics: “The consequences of limiting labor migration are enormous. We need these people to continue to innovate. If we can't get these people here, we'll go to one place pull that we can grow from. Be on your guard, because soon you will get exactly what you ask for”.
ASML employs more than 42,400 people worldwide. Of these, around 23,000 are expected to work in the Netherlands. Around 40 percent of the 23,000 employees came from abroad. To date, ASML has built all of its lithography systems in the Netherlands. In the foreign branches, the manufacturer conducts research, maintains relationships with suppliers and takes care of on-site maintenance at customers' sites.
ASML needs new people because the company wants to massively expand its production in the next few years. From 2025, it would like to produce 600 imagesetters for coarser deep ultraviolet (DUV) lithography and 90 EUV systems per year. From 2028 onwards, 20 EUV systems with more complex numerical apertures (High-NA EUV) will be added every year.
For comparison: in 2023, ASML sold a total of 421 new and 28 refurbished lithography systems, including 53 EUV imagesetters. The company currently has a production backlog worth 39 billion euros.
Operation Beethoven
ASML is considered a Dutch and European crown jewel because the company is the only company in the world to manufacture machines with extreme ultraviolet (EUV) exposure technology. The entire world relies on ASML's lithography systems, including chip makers TSMC, Samsung and Intel.
The outgoing cabinet is currently said to be working on plans to keep ASML's production in the Netherlands. Prime Minister Mark Rutte is said to have made the venture a top priority as “Operation Beethoven,” reports De Telegraaf.
(mma)