A group of eight companies led by ASML is again pleading for regulations that stimulate the chip sector. They say these have to go beyond the 2.5 billion euros in investments promised by the government and the Eindhoven region.
At the end of March, the outgoing Dutch cabinet and the Eindhoven region jointly set aside 2.5 billion euros for various initiatives to foster the chip sector. New housing projects, investments in technical education and an improvement of the infrastructure in and around Eindhoven are in the pipeline.
More than 2.5 billion euros
ASML already indicated that more investments will be needed to keep the Veldhoven-based company in the Netherlands. In addition, the Dutch parliament must ensure that favourable tax rules for expats remain in place. ASML is repeating these and other wishes this week along with seven other chip companies, reports Reuters.
Chief of Global Affairs at ASML Frank Heemskerk, former foreign minister (2006-2010), communicated his company’s wishes to political ministers. “ASML needs to continue to grow, to meet the enormous demand for microchips and we ask you to make this growth possible, preferably in the Netherlands, where we are reaching our limits.”
Other criticism from the chip companies focuses on a perceived overabundance of red tape and the possible immigration restrictions the most likely future coalition will implement. These will make it difficult for chip companies to attract international talent, while the influx of international students would drastically decrease as well, leaving ASML unable to find new workers inside the Netherlands.
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Nothing to complain about?
In terms of tax benefits, ASML already has nothing to complain about, Tax Law Professor Jan van Streek recently argued to Dutch news organization RTL Nieuws. “In terms of taxes ASML isn’t having a tough time at all, they pay 15 percent in profit tax and that is not a heavy burden.” Van Streek spoke of “fiscal crocodile tears” at the company.
Nevertheless, international competition is fierce. ASML has locations all over the world and its ventures are also coveted by other European countries. The headquarters in Veldhoven is preferred for future expansion plans, but in March it appeared that France could be a possible alternative.
Either way, these are turbulent times for ASML. CEO Peter Wennink and CTO Martin van den Brink will depart on April 24. Frenchman Christophe Fouquet will lead the chip machine maker; the CTO role will disappear.
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