Dutch Chip Giants Call for €150 Million Annual Government Investment
Almere, Monday, 8 July 2024.
ASML leads Dutch semiconductor companies in urging the government to invest €100-150 million annually to maintain the Netherlands’ competitive edge in the global chip industry. This move aligns with EU efforts to bolster Europe’s technological leadership.
The Semiconductor Industry
The focus of this investment appeal is the semiconductor industry, which is crucial for the production of integrated circuits or chips. Semiconductors form the backbone of modern electronic devices, including smartphones, computers, and various industrial and automotive applications.
Innovation and Benefits
Semiconductors enable advancements in technology by allowing devices to become smaller, faster, and more efficient. Innovations such as photonics and quantum computing are closely linked to the semiconductor industry. Photonics, for instance, uses light (photons) to transfer information, which can lead to faster and more efficient data transmission compared to traditional electronic methods.
How It Works
Photonics involves the generation, manipulation, and detection of light. It uses semiconductor materials like silicon to create photonic integrated circuits (PICs). These circuits use light to perform functions such as data transmission and signal processing, which are typically done using electronic circuits. The advantage of using light is that it can carry more data at higher speeds with less energy.
ASML and the Netherlands’ Role
ASML, based in Veldhoven, Netherlands, is a global leader in semiconductor manufacturing equipment. The company’s financial director, Paul Verhagen, emphasizes the Netherlands’ unique position in the semiconductor industry. ASML produces advanced lithography equipment essential for chip manufacturing, which is critical for maintaining the country’s competitive edge[1].
The European Context
The call for investment from Dutch chip companies aligns with broader European Union initiatives. The EU has approved the European Chip Act, aiming to mobilize €43 billion to double the EU’s share of global chip production by 2030. This strategic move is designed to increase Europe’s technological autonomy and reduce dependency on external suppliers[2].
National Growth Fund and Future Prospects
Despite the cancellation of Round Four of the National Growth Fund, the Dutch chip sector remains determined to push forward. The proposed €100-150 million annual investment is seen as vital for the sector’s growth and sustainability. Earlier this year, a significant investment of €2.5 billion was announced for the Eindhoven region to improve the business climate for the microchip sector[1].
Conclusion
The Netherlands’ chip companies, led by ASML, are advocating for substantial government investment to sustain and grow the country’s strong semiconductor sector. This aligns with the EU’s broader goals to enhance technological leadership and strategic autonomy. The success of this initiative could solidify the Netherlands’ position as a key player in the global semiconductor industry.