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Five to eight billion euros are needed to keep ASML for the Netherlands, much more than the 2.5 billion euros the outgoing cabinet promised together with the Eindhoven region. At least that is what Jeroen Dijsselbloem, mayor of Eindhoven, said in response to questions from the city council.

According to Dijsselbloem, the region initially appealed to the cabinet for 5 to 8 billion euros. “But the cabinet pushed back on that by saying it cannot commit to this kind of large expenditure at this time,” Dijsselbloem said, according to Dutch news site RTL News. “The cabinet is on its way out, and at the same time, another cabinet is being formed that is struggling to put the money together.”

Tip: Can 2.5 billion euros keep ASML in the Netherlands?

In an interview with Dutch financial newspaper FD in March, Dijsselbloem did not mention a specific amount. He only mentioned a one-time billion-dollar investment was needed. He was responding to the commotion about ASML’s looming departure from the Netherlands. CEO Peter Wennink has repeatedly made it known that government policy is deterring ASML, among other things, because of the impending tightened labour migration policy.

Investing in the industry

In response, the outgoing Rutte IV cabinet, together with the Eindhoven region, promised to invest in the industry. This will amount to 2.5 billion euros in additional spending, particularly for Brainport Eindhoven.

This includes approximately 500 million for local infrastructure development and a one-time investment of 450 million in technical education until 2030. The latter would also benefit other technical universities in the country, not just the one in Eindhoven. The Dutch government expects a quid pro quo from ASML for that extra money. It must make ‘further investments in the Netherlands’ and remain based there.

Cabinet won’t promise more

But apparently, 2.5 billion euros is still insufficient to pay for all the investments needed until 2040. According to Dijsselbloem, this involves money for housing construction, accessibility, facilities, and ‘availability of talent’. However, the cabinet does not want to promise more, also given its caretaker status—a status, incidentally, that it sometimes uses as an argument for whether or not to take up issues.

Earlier, ASML signed a letter of intent with the municipality of Eindhoven for large-scale expansion of the company. The chosen site for that expansion is the Brainport Industries Campus (BIC) in Eindhoven. This should make 20,000 jobs possible. Further expansion in home base Veldhoven is virtually impossible.

Also read: ASML: from a leaky shed to the chip industry’s key player