The Netherlands is scrambling to stop ASML from moving its lithography business outside...

[Alfonso Maruccia]

Why it matters: ASML is the largest manufacturer of photolithography machines, designed for etching intricate circuits onto silicon wafers to create advanced computer chips. It stands as the most highly valued European tech company, boasting a market capitalization of nearly $400 billion. Additionally, ASML represents one of the major business ventures in the Netherlands' economy.

ASML is considering new hiring opportunities outside its home country, and the Dutch government is scared enough to study proper countermeasures to curb this concerning turn of events. As the world's only supplier of extreme ultraviolet lithography (EUV) machines, ASML is concerned about recent policies from Amsterdam authorities aimed at restraining immigration.

According to the latest, unconfirmed rumors coming from the Dutch press, the government has even put together a secret taskforce known as "project Beethoven" to try to keep all of ASML's business interests inside the Netherlands' borders. In a recent interview, ASML CEO Peter Wennink said that the company could be forced to move some of its business to other countries – or even different continents – if the government makes hiring the most skilled people harder.

ASML can only grow if it can hire enough qualified workers, Wennink said. If skilled engineers are made to pay higher taxes in the Netherlands, ASML will be forced to go to Eastern Europe, Asia or the United States, even if the company would prefer to stay in its home country, the executive manager stated.

Besides hiring obstacles stemming from recent policy changes, ASML seems to be concerned about other local issues as well. The Netherlands is suffering from significant electricity grid congestion in industrial power supplies, and recent Europe-wide attempts to limit greenhouse (nitrogen) emissions could make ASML's activity much harder.

Rumors say that ASML could consider expanding its operations in France, while its headquarters would likely stay where they are now (near the city of Eindhoven). The supposed existence of the project Beethoven task force seems to suggest that the Dutch government isn't willing to accept the change. The Dutch Ministry of Economic Affairs said that it's currently exchanging "views" with ASML about several issues, but cannot provide further clarifications about this specific matter (yet).

ASML's business grew by 30 percent in 2023, the latest financial reports say, with total net sales of €27.6 billion and a gross margin of 51.3 percent. The company has amassed an order backlog of chipmaking machines that's worth €39 billion, despite being affected by US sanctions against China and additional export controls enforced by the Dutch government.

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https://www.techspot.com/news/102166-dutch-authorities-scrambling-stop-asml-moving-lithography-business.html

 

[yRaz]

Oh, yeah, great idea. Let's increase diversity rather than talent. I can't wait for the airlines to start hiring pilots based on race and gender rather than skill. *stares at united airlines*

 

[RudyBob]

Oh, yeah, great idea. Let's increase diversity rather than talent. I can't wait for the airlines to start hiring pilots based on race and gender rather than skill. *stares at united airlines*

The airlines do that already and have been for some time. That includes air traffic controllers, mechanics, etc

 

[ScottSoapbox]

So the government limited who the company could hire, the amount of electricity they can use, and raised their taxes…

…but needs a taskforce to tell them why the company is consider moving?

 

[yRaz]

The airlines do that already and have been for some time. That includes air traffic controllers, mechanics, etc

Well that explains my layover in Atlanta

 

[yRaz]

So the government limited who the company could hire, the amount of electricity they can use, and raised their taxes…

…but needs a taskforce to tell them why the company is consider moving?

Thats paid for with the increase in taxes

 

[Theinsanegamer]

Whatever happened to training people? Oh yeah, these companies want individuals to take that cost upon themselves while they hire from outside their borders for a fraction the price.......

So the government limited who the company could hire, the amount of electricity they can use, and raised their taxes…

…but needs a taskforce to tell them why the company is consider moving?

But reddit told me that regulations are totally great and only the most evil of magats would have a problem with them!

 

[yRaz]

Whatever happened to training people?

You haven't heard? Companies are only looking to hire people that are 18-25 with atleast 1 masters degree and 10 years of experience

 

[redgarl]

You haven't heard? Companies are only looking to hire people that are 18-25 with atleast 1 masters degree and 10 years of experience

Yeah, it makes it easy for the HR when they only need to review 3 applications over 10 000 received...

 

[yRaz]

Yeah, it makes it easy for the HR when they only need to review 3 applications over 10 000 received...

HR shouldn't exist. Have you ever noticed how most people who work in HR are single?

 

[Vanderlinde]

Half of the netherlands is on a sell-out or moving to other countries which offer better conditions.

Even me, with a 15 years of business, moved out of the Netherlands due to it's crazy and absurd tax.

If you make 300k a year; 55% of that = Tax. Have a nice day.

 

[BabaYaga]

Oh, yeah, great idea. Let's increase diversity rather than talent. I can't wait for the airlines to start hiring pilots based on race and gender rather than skill. *stares at united airlines*

The article says the exact opposite. Good job reading.

 

[jpvalverde85]

Dont want the company leaving? gave them conditions to choose staying rather than blocking them (and by Streisand effect literally making them GTFO), aint so hard to reach that conclusion, you cant cover the sun with the palm of your hand.

 

[yRaz]

The article says the exact opposite. Good job reading.

Mind quoting what part of the article says the exact opposite or do you not understand what "exact opposite" means

 

[Gigabob]

Oh, yeah, great idea. Let's increase diversity rather than talent. I can't wait for the airlines to start hiring pilots based on race and gender rather than skill. *stares at united airlines*

Explains the Boeing 737-Max and why they don't use bolts to secure doors on a pressurized plane anymore.

 

[Gigabob]

Be interesting to see how the Dutch Government tries to restrict expansion by ASML - when even Communist China let TSMC expand all over the world.

 

[jonny888]

Mind quoting what part of the article says the exact opposite or do you not understand what "exact opposite" means

Oh, yeah, great idea. Let's increase diversity rather than talent.

"ASML CEO Peter Wennink said that the company could be forced to move some of its business to other countries – or even different continents – if the government makes hiring the most skilled people harder."

You claimed they were after diversity over talent. The article states they're trying to hire the most talented/skilled. Seems like the opposite to me.

 

[yRaz]

"ASML CEO Peter Wennink said that the company could be forced to move some of its business to other countries – or even different continents – if the government makes hiring the most skilled people harder."

You claimed they were after diversity over talent. The article states they're trying to hire the most talented/skilled. Seems like the opposite to me.

Oh, that's the "exact opposite" of that? We all know(or should) that the Nordic countries are implementing DEI initiatives and they are being met with massive backlash. won't hire an unqualified immigrant? well you get hit with massive tax penalties, which is one of the reasons ASML stated they're leaving.

Businesses are leaving enmasse because there simply isn't enough people relative to their populations to meet the diversity initiatives. So then the bean counters say, "well it's cheaper to move this factory here and pay all our top talent to move there than do business here." So then they leave.

 

[Strontium]

"ASML CEO Peter Wennink said that the company could be forced to move some of its business to other countries – or even different continents – if the government makes hiring the most skilled people harder."

You claimed they were after diversity over talent. The article states they're trying to hire the most talented/skilled. Seems like the opposite to me.

I believe he was saying that the government is forcing the company (through laws) to hire based on racial quotas and not based on skill. This is why the company is looking to move operations outside the country.

 

[Nvdbeek]

Ok, since most of you seem unfamiliar with current Dutch politics. The issue here is that the Netherlands is going down the path of national conservatism (Trumpism if you like). So tougher laws on immigration, no special treatment of expats. ASML doesn't like that because the right wing identity politics doesn't get you talent, just like the left kind doesn't.

In addition the center right/ populist- right government of the last 12 years or so didn't invest in infrastructure, so now the electricity grid is overloaded. Just in case you're not sure: That isn't beneficial to industry. And to make matters even worse, they kicked the can on necessary reforms to the agricultural industry to prevent the local environment to go completely belly up, and now drastic measures are required which again hamper the growth of industry. The parties that won the last elections would for a large part rather double down on xenophobia, overspending on subsidies and pollution, so it doesn't really look like things are going to change for the better. That is why ASML and other big companies are actually seeking the press to try in a last ditch effort. For the Netherlands it would be better if people wised up and understand that a small trade oriented country that owes its wealth to globalism has a better chance being integrated in a global economy (warts and all). And start investing rather than spending, but that's a whole different topic.

 

[Jme Kerul]

Half of the netherlands is on a sell-out or moving to other countries which offer better conditions.

Even me, with a 15 years of business, moved out of the Netherlands due to it's crazy and absurd tax.

If you make 300k a year; 55% of that = Tax. Have a nice day.

Belgium has the same shitty tax policy, maybe these politicians are cousins, after all.

 

[kiwigraeme]

A lot of this will be posturing etc

I find it interesting many commentators are putting up BS and strawman arguments about diversity for diversity sake ( though that is a viable strategy - some Corps do like a wide selection of Directors for example )

London , New York , Singapore , Frankfurt, USA have benefited for centuries . London for a long time , Ancient Rome & Egypt .
Even the Mongols ( they didn't randomly kill everyone ) . All have benefitted from the influx of highly skilled , educated , craftsmen

This has given them a massive competitive advantage ( plus they didn't pay for the education , up bringing and health )

I'm going to stop here as this is so well known and obvious

The down side is stealing valuable human resources much need in poorer countries - eg nurses, dentists, doctors, engineers etc
So criticizing skilled workers coming in from other countries while kicking that country in the teeth is really obnoxious.

As an aside - France 20 century - rich people/companies trying to escape and nationalisation of industies is a counterpoint
Do you feel sorry for say Rothschilds ?

 

[hwertz]

Some of you have this exactly backwards -- this is not the Netherlands trying to force ASML to hire "diverse" hires, or untrained immigrants. It's the opposite -- they need fairly specialized engineers to develop their products (and probably special skills in some of the production), and don't have enough locally. The Netherlands is looking at restricting hiring of people from outside the country, and ASML is concerned there are not enough people within the country with the skills they require.

I'll note an analogous example -- when Siemens installs new nuclear reactors, they bring over some Germans with them to show the locals how to operate the plant. It's not to bring in Germans because of labor costs, it's because (for instance within the US) there are relatively few nuclear engineers, and none fully trained on the specifics of the Siemens reactor (well, I'm sure there's some some trained on the Siemens reactor, but they'll already be busy operating an existing one.) I have no idea what they'd do if the US took a hard "no foreigners working on US soil" stance.

I must say, I was a bit surprised to find out (several years back) when the US House and Senate were so concerned about fabs being concentrated in China and Taiwan, wanting more fabs here, etc., that these fabs all buy integral parts of their fabs from a single vendor. What the heck would even happen if ASML somehow folded?

 

[jonny888]

I believe he was saying that the government is forcing the company (through laws) to hire based on racial quotas and not based on skill. This is why the company is looking to move operations outside the country.

Maybe he did. Nothing in this article or the 2 source articles mention that as a reason though. They're looking to leave because it's becoming increasingly difficult to hire internationally (which they rely on to meet their required skills) and potentially over concerns regarding the amount of tax. Absolutely nothing to do with diversity quotas (which I abhor, but aren't anything to do with the information we currently have)

 

[toooooot]

By moving do they mean China?
If they asked 50 billions, China would
pay right now.