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ASML's future growth in Netherlands remains uncertain
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ASML's future growth in Netherlands remains uncertain
Mar 7, 2024 5:34 AM

AMSTERDAM, March 7 (Reuters) - A crisis meeting between

top executives of ASML and Dutch Prime Minister Mark

Rutte led to the CEO of the Netherlands' largest company ruling

out quitting the country but failed to resolve issues

surrounding its future growth plans.

As chipmakers around the globe pour billions of dollars into

setting up new plants to cope with soaring demand, ASML, their

largest supplier, has said it will need to roughly double the

size of its operations in the coming decade, but faces

challenges in doing so at home.

"There is a considerable gap between the concerns of

industry, and what we think is necessary, and what politicians

think," ASML CEO Peter Wennink told reporters after Wednesday's

meeting in Rutte's office.

If ASML cannot grow in the Netherlands "it can do so

elsewhere", he said.

ASML employs 42,000 staff worldwide, half of them in the

area around its headquarters in Veldhoven, Netherlands, where

its machines are designed and assembled.

Attracting scarce foreign engineering talent to the

Netherlands is a major issue. Others include difficulty

obtaining building permits, constraints on the Dutch electrical

grid, transportation bottlenecks and ensuring that there are

plans in place for hospitals, schools, and housing to

accommodate growth.

It emerged on Wednesday that Rutte's Cabinet has launched a

campaign dubbed "Operation Beethoven" to try to address the

company's concerns, having seen multinationals Shell and

Unilever depart the Netherlands in recent years.

However, difficulties around staffing cannot fully be

resolved by talks with Rutte's government, which is in a

caretaker role following 2023 elections that saw

anti-immigration parties book major gains.

While populist lawmaker Geert Wilders is negotiating a new

right-wing government, parliament has approved motions to cap

the number of foreign students allowed into Dutch universities

and scrap a tax break for skilled migrant workers.

Ending that tax break in particular has met with criticism

from ASML, industry groups, staffing experts, and many Dutch

tech employers, including chipmaker NXP. More than 40%

of ASML employees in the Netherlands are not Dutch.

Following Wednesday's meeting, Economy Minister Micky

Adriaansens told reporters the caretaker Cabinet is now trying

to "look at alternatives that do less pain."

It is not clear whether a tax break for foreigners, highly

unpopular with Dutch voters, could be restored.

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