ASML massively buying up real estate in Veldhoven: report

Chip machine manufacturer ASML is buying up Veldhoven real estate on a large scale to accommodate its plans for expansion, RTL Nieuws reports based on its analysis of plots sold around the ASML factories. The tech company recently spent at least 53 million euros, excluding taxes, purchasing land around its existing factories, approximately the same size as the site ASML already owns.

“With the exception of a few companies and houses, the tech company has managed to acquire almost the entire industrial area south of the Kempenbaan in Vehldhoven,” RTL Nieuws wrote. It also bought an adjacent street of homes, a poultry farm, a car dealer, and a tennis and padel club, with plans to demolish them.

The actual amount spent on land around the Veldhoven factories is likely higher, according to the broadcaster. ASML also bought the company that owned the land under the tennis and padel club to get access to that property. The amount ASML spent on that company was not disclosed. Several other companies also told RTL Nieuws that they are still negotiating with ASML, so the counter will continue to rise.

ASML would not confirm RTL’s amounts but did tell the broadcaster that it will continue to build on De Run, the industrial area in Veldhoven, for “a few more years.” On Monday, ASML also announced plans to expand significantly in Eindhoven which could double its existing workforce of over 20,000 employees.

ASML’s expansion in the Netherlands is a win for the outgoing Cabinet's backroom negotiations with the company, nicknamed "Project Beethoven." The chip machine maker started looking at expansion options abroad following the November parliamentary elections, which were particularly hostile towards immigrants, highly-skilled foreign workers and their income tax break, international students, company recruitment abroad, and corporate tax benefits.

The outgoing Cabinet pulled out all the stops to convince ASML to stay. The company is one of the Netherlands' largest employers and a key reason for the country’s leading position in the tech industry. Project Beethoven, a 2.5 billion euro initiative launched last month, aimed to bolster the business climate for the chipmaking sector in the Netherlands. It clearly had the hoped-for effect.