Dutch gov't scrambling behind the scenes to keep ASML in the Netherlands: report

The outgoing Cabinet is scrambling behind the scenes to keep tech company ASML in the Netherlands. The involved Ministries have set up “project Beethoven” to look at how it can prevent the stock exchange gem from looking for better climates across the border, sources told De Telegraaf.

ASML has threatened to expand abroad. According to the newspaper’s sources, it is looking at France as an option. That set off so many alarm bells with the government that it is working at the highest level to prevent ASML from leaving or expanding abroad. Outgoing Prime Minister Mark Rutte will meet with ASML CEO Peter Wennink on Wednesday. He will also receive his French counterpart for dinner to discuss competitiveness, among other things.

ASML is one of the Netherlands' biggest employers. And due to the lack of technically skilled workers in the Netherlands, the tech company employs many expats. Roughly 9,000 of the 22,860 people employed by ASML in the Netherlands are not Dutch citizens. Another 19,500 workers are based outside of the Netherlands, including 8,225 just in the United States and 9,100 spread out around Asia. The rest are in other countries around Europe and the Middle East.

With that in mind, Dutch politics’ swing to right-wing anti-immigration after the parliamentary elections in November is of great concern to ASML. “The consequences of limiting labor migration are major,” ASML CEO Peter Wennink said early this year. “We need those people to innovate further. If we can’t get those people here, we’ll go to a place where we can grow. Be careful because you will soon get exactly what you wish for.”

Last year, ASML generated record-high revenues of 27.6 billion euros, an increase of 30 percent compared to 2022. Net profit surged to 7.8 billion euros, an increase of about 2.2 billion euros.

ASML is Europe’s third largest company by market capitalization, at nearly 365 billion euros. The company’s stock closed at 899.50 euros per share on Euronext Amsterdam on Tuesday, spending most of March near an all-time high of 916.60 euros.

ASML moving parts of the company abroad, or simply expanding abroad, would be an extremely sensitive blow to the Netherlands after multinationals like Shell and Unilever previously moved their headquarters to the United Kingdom. Concerns about the Dutch business climate are coming to a boiling point.

ASML is not only of great economic value but is also strategically important to the Netherlands. The Veldhoven-based company is the only one in the world that can make extreme ultraviolet machines (EUVs) for making chips. The United States has previously pressured the Netherlands into ensuring that ASML can’t sell its most advanced chip machines to China.

ASML declined to comment on future expansion abroad. “It is clear that we must grow,” a spokesperson told the newspaper. “We receive a lot of questions about how, what, and where. But we cannot respond to all rumors and speculation.”

A spokesperson for the Ministry of Economic Affairs said that the government has “regular contact with companies in the interests of Dutch society, the economy, and employment.” They would not comment further.