Chips as a strategic pivot

Semiconductors are indispensable for almost all modern technology: from electric cars and medical equipment to artificial intelligence and defense systems. At the same time, chip production is complex, expensive and highly concentrated in a handful of countries. The Netherlands plays a key role in this, with high-tech suppliers, chip designers and world leaders in chip machines. But according to Beljaarts, we are becoming too dependent on others for crucial links in the value chain. "Without additional efforts, our R&D position, our earning capacity and our economic resilience could come under pressure."

Beethoven as a foundation

A major step in the right direction is the Beethoven project, in which the government, region and sector are jointly investing €2.51 billion to strengthen the business climate for the semiconductor industry. The Brainport region, where ASML, the High Tech Campus and Brainport Industries Campus (BIC) are located, is central to this. "The growth of this sector requires tens of thousands of additional homes, better accessibility and considerably more technical talent," says Beljaarts. By 2030, 62,000 homes should be added in the Eindhoven region, and substantial investments are being made in infrastructure and public transport.

Work is also being done on the talent side: a reinforcement plan has been set up that should lead to 38,000 additional technically trained people at MBO, HBO and WO level. €450 million is available for this until 2030 alone, with a structural contribution of €80 million per year thereafter. This should also lead to better cooperation between educational institutions and companies, such as in Brainport, Twente, South Holland and Northern Netherlands.

Shaking Europe awake

The urgency extends beyond the Netherlands. Together with eight other EU member states, Beljaarts has set up the European Semicon Coalition to act more quickly and decisively. “We cannot wait for new policy from the European Commission,” says the minister. “We must act now.” The Netherlands is taking the lead in this and wants to commit itself to two goals: strengthening the indispensability of Europe in the global value chain (think of the unique ASML technology), and expanding production capacity on European soil. The latter is crucial, because currently only about 10 percent of chip turnover comes from Europe.

Another important initiative is IPCEI-AST, a pan-European innovation program for advanced chip technologies. The Netherlands is coordinating the exploration of this and is simultaneously exploring how possible participation can be financed.

International cooperation and safety measures

Because Europe will never have all the links in the chain in-house, the Netherlands is also explicitly seeking cooperation with countries such as South Korea, Japan, Taiwan and the United States. For example, partnerships have recently been concluded in the field of innovation, talent and knowledge exchange, including a Memorandum of Understanding (MoU) with South Korea and Singapore and talent programs with India.

At the same time, safety is a point of concern. Since September 2023, stricter export regulations have applied to advanced chip production equipment in the Netherlands, due to its possible military applications. “These technologies must not fall into the wrong hands unchecked,” says Beljaarts. The export measures have since been further tightened.

Strengthening national innovation power

New steps are also in the pipeline at national level. For example, a broad consortium of 64 companies from the chip sector has offered the ChipNL innovation programme. This programme, which is worth a private contribution of €315 million, focuses on chip design, advanced packaging and production equipment – ​​three Dutch specialities. Co-financing from the government is now also required for implementation. The minister is currently having the proposal assessed for feasibility, but emphasises the urgency of rapid decision-making.

In addition, there is close cooperation with Defence, which considers semiconductors to be a crucial technology for future-proof armed forces. Smart sensors, quantum technology and AI – they all depend on advanced chips. By continuing to invest in this technology, the Netherlands can maintain its lead and contribute to European defence ambitions.

Sector agenda in the making

To guide all these initiatives in the right direction, the Semicon Board Nederland was established in early 2025, an advisory platform with representatives from top companies (ASML, NXP, VDL), knowledge institutions and involved ministries. Together they are working on a sector agenda that should lay the foundation for a competitive and sustainable semiconductor industry towards 2035.

Minister Beljaarts concludes his letter with a clear warning and promise: "Maintaining our top position is by no means a given. But if we take action now, we can improve our earning power, our strategic autonomy and our resilience.