Dutch Bid for €900m Funding Without Chips

The Dutch chip industry is making a strong case for €900 million in support for innovation over the next six years. This call comes at a crucial time as the Netherlands seeks to maintain its influential position in the semiconductor sector, according to trade group ChipsNL following the formation of a new government.

Despite being a key player in the global semiconductor landscape, the Dutch chip industry, which comprises mostly small and medium-sized enterprises (SMEs) along with a few major players, is facing increasing challenges that threaten its competitiveness. ChipsNL points to a lack of focus, insufficient public investments, and the absence of a cohesive strategy as factors contributing to this predicament.

The ChipNL consortium is urging for an annual public co-financing of €100 million to €150 million to be allocated towards an innovation program spanning the next six years. By securing this funding, the industry aims to achieve significant growth, with projections indicating a potential annual revenue of €9.8 billion by 2030, a figure that could rise to €16.7 billion per year if current growth trends persist.

This proposed investment is not only expected to boost the financial performance of the entire value chain, which predominantly consists of SMEs from various regions in the Netherlands, but also to expand the customer base and safeguard against knowledge loss and job cuts within these enterprises.

Furthermore, such financial support is crucial for maintaining the industry's current standing and global competitiveness, as emphasized by major players like ASML, by mitigating the challenges posed by market saturation and geopolitical shifts that are currently exerting pressure on the sector.