4 ms·

Immigrants get a 30% tax break, meaning that they only have to pay income taxes over 70% of their income. For the average income of people working at ASML, I gu

Immigrants get a 30% tax break, meaning that they only have to pay income taxes over 70% of their income. For the average income of people working at ASML, I guess that they have to pay about 30% taxes. It basically means that ASML can pay less to immigrants workers compared to native workers to give them the same salary. In the Netherlands we are currently having a housing crisis, which is partly caused by labor immigration. This has caused many people, especially those from gen Z, being unable to buy a house. In and around Veldhoven, where ASML has its main offices, house prices have gone up. ASML is investing some money in housing projects. For these reasons, some political parties feel that the tax break should be removed. Which would mean that ASML would have to pay their employees more and due to this they will make less profits. ASML is depending on many companies in and around Veldhoven/Eindhoven and even on some further away for parts of their machines. For that reason, I think it would not be that easy for them to relocate to a different country. They would have to build up contact with local parts produces. If the move to a different country, it maybe also would mean that a part of their employees is not willing to relocate.

tmaly 3y ago
I see an ASML lithography division here in Connecticut that I drive by from time to time. I believe they also have a division in California.
- fjfaase 3y ago
  I get the impression that the development of their waver steppers is still in Veldhoven. It is there were they are assembled and where improvements are tested. It is easy to move production departments, than research and development. It might be the case that part of the research and development is done in close cooperation with some of the suppliers. Their waver steppers have (probably) millions of parts that all have to work together.
bgnn 3y ago
Oh that would be quite easy for them since all these companies can ship the parts wherever ASML wants. They rely a lot of companies in Germany and Belgium, Korea, Taiwan, Japan, USA too.
- fjfaase 3y ago
  On one hand that is true, but I think for some of the critical parts, I guess they do have a rather close relationship with, and having regular meetings with. Having regular meetings with a company that is at two hour drive is a bit easier than at a different continent. And then there are also culture changes that require you to build a relationship with your suppliers.

tmaly 3y ago

I see an ASML lithography division here in Connecticut that I drive by from time to time. I believe they also have a division in California.

fjfaase 3y ago
I get the impression that the development of their waver steppers is still in Veldhoven. It is there were they are assembled and where improvements are tested. It is easy to move production departments, than research and development. It might be the case that part of the research and development is done in close cooperation with some of the suppliers. Their waver steppers have (probably) millions of parts that all have to work together.

bgnn 3y ago

Oh that would be quite easy for them since all these companies can ship the parts wherever ASML wants. They rely a lot of companies in Germany and Belgium, Korea, Taiwan, Japan, USA too.

fjfaase 3y ago
On one hand that is true, but I think for some of the critical parts, I guess they do have a rather close relationship with, and having regular meetings with. Having regular meetings with a company that is at two hour drive is a bit easier than at a different continent. And then there are also culture changes that require you to build a relationship with your suppliers.