Dutch Defense Budget Proposed for Chip Industry Growth

2025-09-22 semicon

Eindhoven, Monday, 22 September 2025.
Experts suggest reallocating Europe’s rising defense budgets to strengthen the Dutch semiconductor sector, enhancing economic stability and tech sovereignty amid geopolitical tensions.

The Strategic Importance of the Semiconductor Industry

The semiconductor industry, also known as the chip industry, is identified as a critical sector for both economic growth and national security. Semiconductors are essential components in a wide array of technologies, from consumer electronics to advanced military systems, making them a dual-use technology vital for the European and Dutch economies [1]. The push for investment in this sector comes amid rising geopolitical tensions, highlighting the importance of technological sovereignty [1].

ASML: A Key Player in the Dutch Semiconductor Landscape

ASML Holding N.V., headquartered in Veldhoven, Netherlands, stands as a cornerstone of the global semiconductor industry. It is the sole supplier of extreme ultraviolet lithography (EUVL) machines, which are necessary for manufacturing the most advanced chips [5]. This unique position underscores the strategic importance of supporting ASML through increased defense budget allocations, as the company is pivotal in ensuring technological leadership in Europe [5].

Benefits of Investing in Semiconductor Innovation

Investments in the semiconductor industry are projected to bolster economic stability by securing supply chains and reducing dependency on imports. By enhancing domestic production capabilities, the Netherlands can better navigate the volatile global semiconductor market, which has been subject to significant disruptions in recent years [5][6]. Moreover, strengthening this sector aligns with broader European goals of maintaining at least 20% of global semiconductor production within the continent by 2030 [5].

Policy Recommendations and Future Outlook

Jan van den Biesen and Luc Soete advocate for the strategic reallocation of defense budgets to support semiconductor innovation, emphasizing the need for a robust policy framework that integrates defense and economic objectives [1]. As Europe aims to enhance its technological independence, such investments are crucial. The Dutch government is expected to present detailed proposals by the end of 2025, reflecting the urgency of the current geopolitical climate [5].

Bronnen

semiconductor industry defense budget