The government and the Eindhoven region are investing 2.5 billion euros to preserve the chip sector

The outgoing cabinet and the Eindhoven region are jointly allocating 2.5 billion euros to improve the business climate for the chip sector. The hope is to keep ASML in, among other things.

Outgoing Minister Micky Adriaansens of Economic Affairs and Climate calls the chip sector of great importance for the earning capacity of the Netherlands and employment, reports NU.nl. Project Beethoven was set up to ensure that the sector remains present in the Netherlands. This plan provides for additional investments in talent development and should make it more attractive to live and work in the region. This should make it easier to attract foreign talent. Project Beethoven also aims to tackle the shortage of the electricity grid in the region.

The outgoing cabinet is investing 1.7 billion euros and the Eindhoven region is contributing 800 million euros, writes RTL Nieuws. The government is releasing 1.3 billion euros from the Growth Fund for its share. The rest comes from existing funds for housing and mobility. The government does warn that by taking these measures it is assumed that ASML will 'make further investments in the Netherlands and maintain its location in the Netherlands'. If the investment plans change, the forecasts and associated efforts are adjusted.

ASML has regularly expressed concerns about the business climate in the Netherlands. For example, ASML CFO Roger Dassen told Tweakers earlier this year that the company wants to grow in the Netherlands, 'but that must be possible'. The company would therefore consider expanding in France, something the government wants to prevent, De Telegraaf sources said earlier this month.

One of the company's concerns revolves around legislation for knowledge and labor migration. Forty percent of ASML's staff is non-Dutch. The House of Representatives recently adopted a motion by NSC chairman Pieter Omtzigt that will phase out the tax credit for expats. Furthermore, the housing shortage would be viewed with suspicion, according to a source from De Telegraaf.