The chip large ASML is planning an growth in Eindhoven, making it a fantastic success for the Dutch know-how group

Chip giant ASML intends to stay in the Netherlands and continue to expand. This is a big win for the Dutch tech industry.

The chip machine manufacturer has signed a non-binding letter of intent with the Eindhoven city council and envisages a possible expansion at the Brainport Industries Campus (BIC) west of the city.

BIC is located in the Brainport region of Eindhoven – a major technology and innovation center in Europe – and is dedicated to the high-tech manufacturing industry. For ASML, BIC represents an “interesting option,” Roger Dassen, the company’s CFO, said in a statement. This is due to the campus's close proximity to Veldhoven, where the company is based.

The tentative agreement appears to allay fears over ASML's alleged relocation abroad. While the company never confirmed or denied that such a move was planned, it expressed concerns about challenges in talent acquisition and the general business climate in the Netherlands.

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“Ultimately, we can only grow this company if there are enough qualified people,” ASML CEO Peter Wennink told RTL in January.

“We prefer to do it here, but if we can’t get these people here, we’ll get these people in Eastern Europe or in Asia or in the United States.”

A possible relocation would have a significant impact on the Dutch technology sector and the Dutch economy. ASML is not only a global leader in chip manufacturing equipment. It is also the world's only manufacturer of extreme ultraviolet (EUV) lithography machines, which are needed for the most advanced chips.

In addition, the chip machine manufacturer is one of the largest employers and most profitable companies in the Netherlands, achieving sales of 27.6 billion euros in 2023.

To keep its technological crown jewel at home, the Dutch government launched “Operation Beethoven” last month. The €2.5 billion initiative aims to improve infrastructure, housing, technical training and talent acquisition – particularly in the Eindhoven region.

All of these are key aspects of managing ASML expansion.

“Decisions about future locations for our company must be supported by favorable conditions, such as the availability of talent, infrastructure, housing and by a strong investment climate in general,” Roger Dassen, the company's CFO, said in a statement.

“The recently announced government measures contribute to this.”

However, the deal is not set in stone yet. Discussions are continuing and a final decision from both parties is expected in June.

If the plan is implemented, ASML could double its existing workforce in the Netherlands, which currently stands at around 20,000 people.

Micky Andriaanses, Minister for Economy and Climate, described the agreement as “good news”. “[It] “Confirms the confidence in our business climate in the Netherlands and underlines the government’s support for the chip sector,” the minister said on X.