2024-03-13 07:06:25
One of the world’s heavyweights in semiconductors, the Dutch ASML, would be ready to set up in France. In Paris, this rumor is a dream, but in the Netherlands, it makes the government tremble. The group is threatening to leave because of anti-migrant measures currently under discussion.
Leaving a liberal country, with an advantageous tax regime, for a country considered, rightly or wrongly, to still be over-administered, the idea hardly seems credible. But the Dutch government takes the matter very seriously: it has launched an emergency plan to retain this jewel of the economy. ASML manufactures machines that are unique in the world: they are used to machine miniature chips, less than seven nanometers. This know-how has propelled this company to fourth place among world champions of semiconductors. The company is now worth 250 billion euros, or 20% of the Amsterdam stock market. A strategic group for the development of artificial intelligence, and of course for the economy of The Netherlands.
Restrictions on immigration are bad for business. The company’s boss, Peter Wenninck, says he is exasperated by the anti-migrant laws in preparation. Under the leadership of the populist Geert Wilders who won the legislative elections last November, the four parties currently negotiating to form a coalition government support an arsenal of immigration restrictions.
The 30% tax rebate granted to highly qualified foreign residents would be eliminated, this is what is most contested by Peter Wenninck, the reception of foreign students limited and the teaching in English given in universities partly eliminated.
A nightmare for ASML human resources
A policy that would weaken the future of ASML because 40% of its 23,000 employees based in the Netherlands are foreigners. In the chip war, the hunt for talent is global. There is no question for ASML of giving up the foreign workforce essential to its development. Especially since there are not enough local candidates to meet the company’s demand. Director General Peter Wenninck warned in January that this anti-migrant system was bad for business. Since then, the rumor of a relocation has been growing, why not in France. Some speak of blackmail. True or false, Economy Minister Micky Adriaansens is doing her best to prevent it.
Foreigners are accused of driving up the price of housing. Dutch startups are also complaining about these future restrictions on welcoming foreigners. Because they also look well beyond the borders for around 30% of their staff. These profiles recruited at a high price are very profitable for companies but their presence is driving up real estate prices: +65% for five years in a country twelve times smaller than France. Housing has become unaffordable.
This major economic stress attributed to the excessive presence of foreigners fuels the xenophobic vote. The Dutch government must therefore resolve this acute problem while avoiding the false response of the far right to keep the goose that lays the golden eggs on its soil. A balancing act to answer a real political and economic question: how to leave the door open to migration which is vital for the economy without widening the inequalities that are deadly for democracies?
Also read: Amsterdam and Seoul join forces around semiconductors
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