ASML is helping to build many houses in the Eindhoven region in the coming years. The chip machine manufacturer is financially helping to construct more cheap houses. It is doing this on a non-profit basis, and the houses are not intended for its own staff.
There is a severe housing shortage in the Eindhoven region, as elsewhere in the Netherlands. ASML, which is headquartered in Veldhoven, near Eindhoven, is also experiencing the disadvantages of this. The company is growing faster than ever and is hiring hundreds of new employees every month. Those people also have to live somewhere. In the past five years, ASML has seen the number of employees double to a total of 40,000 people. Suppliers of ASML, many of which are also in the region, have grown as a result. All this has created additional pressure on the housing market.
This has made it virtually impossible for people with lower (middle) incomes to get a house in the region. ASML wants to do something about that by helping project developers to build new houses. So that more people in the region get the chance to rent or buy a house. These houses have a rent of up to 1100 euros per month or a purchase price of up to 375,000 euros. ASML explicitly states that the houses are not intended for its employees.
Also read: ASML opens additional office in the Netherlands
ASML is not giving cash way
ASML is in talks with three ongoing housing projects to get them off the ground faster with the ASML millions. However, this money is not freely available, and conditions are attached to this. For example, ASML only wants to support projects with at least 100 homes. The municipalities involved must indicate that the projects are essential and ASML’s contribution must not distort the market. This means that the money is not intended to fill the pockets of project developers. The money must close any gaps in the budget or eliminate risks. For example, ASML has indicated that if homes are built, but the developer has trouble selling them, ASML is willing to purchase them. This reduces the risk of the project developer.
In any case, ASML states that it does not want to be the “cheap cash machine” of project developers. There is currently talk of building about 500 homes, but ASML says there is still room for more projects and homes.
What is the benefit of ASML?
People may wonder why ASML is doing this because it does not seem to benefit them. Commercial companies building homes was much more common in the last century; we rarely see it today. The housing market managed well for decades, the market provided enough housing. Those days are now over, and there is a vast shortage again. For an organization like ASML that is growing rapidly, this is a problem because new employees have difficulty finding housing. ASML’s growth also creates criticism from the community. People with lower incomes find it hard to find a house because all those new ASML employees are also looking for one. ASML employees often earn well and can offer more on a home.
By supporting housing projects for low-cost housing in the region now, ASML hopes to regain goodwill within the community. It keeps its employees from moving in and gives people with lower incomes in the region a better chance of finding housing.
In addition to that goodwill, new housing always creates flow in the housing market, which may indirectly benefit ASML employees. In addition, ASML expects to continue growing in the coming years and will need even more houses. Therefore, it wants to continue supporting housing projects until at least 2040. When the pressure on the housing market in the region eases, there will also be more spots for ASML employees again.
Which IT companies will follow?
The tightness in the housing market is a big problem for the Dutch economy, especially the tech sector. Several political parties are also looking at stricter migration laws, including for knowledge workers and foreign students. That could hinder the growth of tech companies. ASML is now becoming socially involved by building houses. By doing that, it is helping to create a solution. We are curious to see which IT companies will follow this example. For example, Booking.com made 2 billion euros in profit last year and has nearly 20,000 employees, of which 5,500 are in the Netherlands. With the travel industry multiplying again, the company undoubtedly wants to grow again. The housing shortage in the Amsterdam region is certainly no less than in Eindhoven. With that, a company like Booking.com has the same problems as ASML. Booking.com is a bit smaller than ASML, but perhaps Booking.com could set up a joint fund with other innovative companies in the region. For example, with Adyen and Uber.
2 days ago
