Semiconductor equipment company ASML hinted at the possibility of relocating its headquarters in response to Dutch government policies, and on the 28th (local time), the Netherlands announced an emergency measure mobilizing a budget of 2.5 billion euros (approximately 3.7 trillion KRW) to prevent this.
According to major foreign media including AFP, the Dutch government revealed detailed plans for the so-called 'Beethoven Operation,' which involves a major overhaul of the infrastructure in the Eindhoven area where ASML's headquarters are located. The goal is to comprehensively improve housing, education, transportation, and power grids in Eindhoven. The government also announced it would submit new tax benefit measures to parliament to ease the management burden on companies.
The Dutch cabinet stated in a press release, "We expect that through these measures, ASML will continue to maintain its headquarters in the Netherlands."
The government took extraordinary measures because ASML, which manufactures extreme ultraviolet (EUV) lithography equipment essential for cutting-edge semiconductor production, recently publicly hinted at relocating its headquarters due to government policies. Considering ASML's position in the global semiconductor market, the Netherlands anticipates significant economic damage if ASML moves its headquarters.
ASML has expressed dissatisfaction, citing difficulties in securing high-level talent due to the government's anti-immigration policies. Forty percent of ASML's 23,000 employees in the Netherlands are foreigners. The Dutch parliament recently passed a bill removing tax benefits for highly skilled migrant workers. ASML also claims that the government has failed to make appropriate infrastructure investments to keep pace with the rapid growth of Eindhoven as a 'technology hub.'
Peter Wennink, ASML's CEO, made a 'bombshell statement' earlier this month, saying, "If we cannot grow in the Netherlands, we will consider other locations," addressing the government and parliament.
While welcoming the government's plan announced on the day, ASML remains cautious. In a statement, ASML said, "If the plan announced today receives parliamentary support, it will strongly support the business environment, and we will continue to cooperate with the Dutch government to finalize decisions related to our business expansion." However, it added, "The decision we are making is not about whether to stay in the Netherlands, but about where to expand."
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