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ASML, computer chip firms testify to parliament on tax, policy needs
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ASML, computer chip firms testify to parliament on tax, policy needs
Apr 3, 2024 10:50 AM

THE HAGUE, April 3 (Reuters) - A group of eight

companies led by Europe's largest tech firm ASML on

Wednesday asked the Dutch parliament to back policies that will

boost the country's chip industry, including retaining tax

breaks on investment and skilled labour.

The appeal comes as ASML weighs what share of its future

operations will be based in the Netherlands, and one week after

the Dutch government presented a plan to spend 2.5 billion euros

($2.7 billion) on improving infrastructure in the Eindhoven

region to keep ASML from leaving.

"ASML needs to continue to grow, to meet the enormous demand

for microchips and we ask you to make this growth possible,

preferably in the Netherlands, where we are reaching our

limits," Frank Heemskerk, ASML's Global Affairs chief, said at a

meeting with lawmakers.

The companies complained about excessive red tape and

inconsistent policy making as well as measures aimed at reducing

immigration even though computer chip sector depends on highly

skilled immigrant workers.

They were also critical of plans to cut tax breaks on

investment, and encouraged the government to continue innovation

subsidies that they said played a big role in the Netherlands'

emergence as a European hub in the global chip industry.

ASML is the largest supplier of equipment to computer chip

makers globally. Former Dutch trade minister Heemskerk began

work as the company's main government liaison in February.

Heemskerk said infrastructure, congestion on the electricity

grid, a lack of affordable housing and unpredictable tax

policies were main stumbling blocks for growth.

Several companies that testified, which included automotive

chip maker NXP and chip equipment suppliers ASM

International and Besi, said that measures

taken as part of the planned Eindhoven investment, dubbed

"Project Beethoven", should be applied more broadly.

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