July 04, 2024 – A consortium of over thirty semiconductor companies in the Netherlands, known as ChipNL, has recently submitted a joint letter to the newly formed Dutch cabinet led by Prime Minister Dick Schoof. The letter urges the cabinet to increase government investments in the chip sector.
Comprising key players such as ASML, NXP, Ampleon, Philips, and ASM – a significant enterprise in the deposition process – ChipNL represents a powerful force in the Dutch semiconductor industry.
In their letter, ChipNL requests that the Schoof cabinet invest between €100 million and €150 million annually in the semiconductor field over the next six years. These companies have committed to allocating an additional €100 million to €200 million from their own budgets each year, potentially resulting in a combined investment of up to €2.1 billion.
This funding is intended to foster deeper collaboration among various components of the Netherlands’ chip industry, enhancing the entire value chain from manufacturing and packaging to the design and production of chip machinery.
Earlier this year, the previous caretaker cabinet, along with the Eindhoven regional government, announced the “Beethoven Plan” worth €2.5 billion. This initiative aims to improve infrastructure in the Eindhoven area and persuade companies like ASML, which had expressed interest in expanding overseas, to stay.
Paul Verhagen, the Chief Financial Officer of ASM – a member of the ChipNL group – explained the rationale behind the request for additional government funding. He emphasized that it is closely tied to the competitiveness of the Netherlands and the strength of its domestic chip industry.
Verhagen anticipates that ASM will double its size in the coming years, and he expects similar growth patterns among other companies in the sector. However, he cautioned that if the Netherlands does not provide adequate support to its domestic semiconductor enterprises, these companies may be tempted to shift a portion of their operations to more investment-friendly environments abroad.
