ASML to stay and grow in Eindhoven area, creating up to 20,000 jobs
Chip giant ASML is set to create up to 20,000 jobs with a potential expansion in Eindhoven, marking a major win for the Dutch tech industry. ASML's expansion plans will likely involve the Brainport Industries Campus (BIC) west of the city, a significant victory for the outgoing Cabinet's backroom negotiations with the company, nicknamed "Project Beethoven."
The decision to explore BIC for expansion aligns with ASML's desire to stay close to its existing facilities in Veldhoven, fostering collaboration and innovation. "BIC is an interesting option for us, which we are now exploring together with the municipality of Eindhoven," said ASML CFO Roger Dassen on Monday. However, the final decision hinges on factors like talent availability, infrastructure, and housing, all of which will be investigated in detail. The plan also has to be voted on by the full City Council early this summer..
After a November election that was particularly hostile towards immigrants, highly-skilled foreign workers and their income tax break, international students, company recruitment abroad, and corporate tax benefits, the caretaker Cabinet pulled out all the stops to try to keep ASML in the Netherlands. The Veldhoven company was looking at prospects to expand abroad, similar to two other major Dutch companies, Boskalis and Van Oord. About a dozen large companies were considering plans to expand or move abroad.
"Ultimately, we can only grow this company if there are enough qualified people. We prefer to do that here, but if we cannot get those people here, we will get those people in Eastern Europe or in Asia or in the United States. Then we will have to go there," said ASML CEO Peter Wennink during an interview with RTL Z in January. Roughly 22,000 of ASML's 42,000 global workforce is located in the Netherlands.
Project Beethoven, a 2.5 billion euro initiative launched last month, aimed to bolster the business climate for the chipmaking sector in the Netherlands. ASML had previously expressed concerns about the country's ability to support its growth, but those concerns appear to be alleviated. The investment will be used to improve infrastructure, increase housing availability, boost technical education in the Netherlands, and attract skilled workers – all crucial aspects for accommodating ASML's expansion.
The potential arrival of ASML at BIC also presents exciting opportunities for the Eindhoven region. BIC is envisioned as a hub for innovation and collaboration, bringing together various players in the chipmaking ecosystem.
ASML's presence would accelerate the development of BIC, creating a vibrant center for technological advancement. Additionally, the 20,000 new jobs would provide a significant economic boost to the region, attracting talent and fostering further growth.
Alderman Stijn Steenbakkers, who spearheads Eindhoven's policy issues related to the economy and the Brainport area, said it was a "crucial moment" that can have a massive impact in the future. "For Brainport Eindhoven, but certainly also for the Netherlands and Europe. With the possible expansion of ASML at BIC, we are building the future earning capacity of the region and the Netherlands."
ASML, located west of Brainport in Veldhoven, is a perfect fit, and ensures the possibilities for the "future economy and prosperity, with jobs at all levels," the alderman noted. "The company’s profile fits seamlessly into the DNA of the campus. BIC is the center of production and innovation in our high-tech manufacturing industry, where entrepreneurship, shared innovation, education and collaboration come together under one roof."
Challenges still remain. The influx of such a large workforce could strain existing infrastructure and housing resources. The municipality of Eindhoven, along with ASML, acknowledges these concerns.
They plan to work together on social programs to ensure a balanced and inclusive expansion that benefits the entire community. This may include initiatives focused on advancing the knowledge and skills of the local workforce and creating affordable housing options.
