The Dutch government has committed €2.5 billion ($2.7 billion) to enhance infrastructure, education, and housing in the Eindhoven region, where ASML is based, to support the company's growth and address its concerns about expanding outside the Netherlands, Bloomberg reports. Micky Adriaansens, the Dutch economic affairs minister, confirmed the figure to journalists, Reuters reports.
The whole project is reportedly called Project Beethoven, and it is expected to take several years, according to media reports. The government's decision to invest in the region follows ASML's hints at considering expansion abroad due to the Dutch business climate, which includes labor migration regulations that restrict foreign talent and issues with tax discounts for emigrants.
In response to ASML's possible plans to relocate its headquarters and build additional manufacturing capacity in France, the government kicked off a plan to ensure that ASML remains invested in the Netherlands and keeps its headquarters in Veldhoven. The government announced plans to implement unspecified measures to reduce the tax burden on businesses.
"In taking these measures, the Cabinet presumes that ASML will continue to invest and keep its statutory, fiscal and actual headquarters in the Netherlands," the statement by the Dutch government published by Reuters reads.
The allocated funds will be used to upgrade the transportation network, including roads, buses, and trains. Additionally, the investment will support technical education and vocational training to meet the ASML's demand for skilled workers. Housing projects are also part of the plan to accommodate the region's growth.
ASML has welcomed the government's announcement, emphasizing the importance of favorable business conditions, such as the availability of skilled talent, infrastructure, and housing, for its expansion plans in the Netherlands. The company said it looks forward to working with the Dutch government to finalize its decision-making regarding its expansion.
"We have a preference to achieve a significant part of our expansion plans in the Netherlands, provided that such expansion plans are supported by favorable business conditions," said Monique Mols, the head of ASML media relations, in a statement published by Bloomberg. "The plans presented today, if supported by parliament, strongly support those business conditions, and will continue to work with the Dutch government to finalize our decision making regarding our expansion."
ASML has huge expansion plans for the next few years. Specifically, the company plans to increase its manufacturing capabilities to 600 deep ultraviolet (DUV) lithography machines and 90 Low-NA extreme ultraviolet (EUV) litho systems per year by 2025 - 2026, and 20 High-NA EUV lithography tools annually by 2027-2028.
