Abstract: The small Dutch town where ASML, a manufacturer of extreme ultraviolet (EUV) lithography machines, is located, has been hit by industrial decline. Its transformation story resembles that of a disruptive start-up, but with two uniquely Dutch elements.
The small Dutch town of ASML, home to extreme ultraviolet (EUV) lithography machine manufacturers, has been hit by industrial decline. Its transformation story resembles that of a disruptive start-up, but with two uniquely Dutch elements.
The U.S. government's efforts to block China's access to high-end semiconductor technology have focused on only two locations outside the United States: Tokyo, Japan, and Eindhoven, the Netherlands.
The latter is a small Dutch town with few high-rise buildings, and its historic city center was destroyed during World War II. Eindhoven, the fifth largest city in the Netherlands, is known as the "smartest place in the world", one of Europe's leading tech hubs and home to ASML, a global semiconductor equipment leader that manufactures the world's most advanced lithography machines. The semiconductors made by these machines are used in everything from smartphones to missiles.
Eindhoven's tech sector has attracted several EU commissioners who regularly visit the city to see how the city, which was hit by industrial decline in the early 90s and devastated during World War II, has transformed into a regional economic powerhouse with an annual growth rate of 8%. The number of patent applications filed annually by local companies and academic institutions equates to nearly 500 patents per 100,000 residents, one of the highest in the world. A quarter of the Dutch private sector's R&D budget (€3 billion per year) is spent here.
A large part of Eindhoven's founders came from ASML, as well as former Philips lighting division Signify, chipmaker NXP, and truck maker DAF.
Jos Benschop, senior vice president of technology at ASML, said Eindhoven is critical to the company's growth because of its century-long experience in high-tech manufacturing, "we operate globally, but proximity to people is very important."
The quote is intriguing, and Benschop goes on to explain, "Without VDL, extreme ultraviolet (EUV) lithography machines would not have been born. It's very easy to invent, but it's hard to turn into something that can actually be made. "VDL is a local family-owned company focused on solving complex engineering challenges.
How does PSV Eindhoven embark on a transformational journey?
Eindhoven's transformation story is like a disruptive startup. Paul van Nunen, director of regional development agency Brainport Development, laughs that like startups, it starts with a dining table, storage cabin and maverick inventors.
But two more "Dutch" unique elements were added to the process: the government's discussion model and Philips as a company. The Dutch government brought together politicians, companies and trade unions to find solutions, and Philips, which began manufacturing light bulbs in Enhofen in 1891, also played an important role.
Van Nunen's office is located in Philips' former research park, overlooking the courtyard where ASML formed a joint venture with ASMI, another local chip manufacturer, in 1984.
In the early 1990s, large companies such as Philips and DAF closed their factories in the face of low price competition in Asia. Eindhoven invited the heads of local company associations, technical universities and business leaders to his home to come up with a counterattack.
Van Nunen recalls that when Philips moved its headquarters to Amsterdam in 2001, the public and private sectors worked together to repurpose the lab and retain staff. Eindhoven's land is also being put to more use, he said, "When I was younger, this whole area was off-limits and only Philips employees could enter, but now it's a place of collaboration. ”
Another Philips research base has become a high-tech park with more than 260 companies, including global satellite positioning (GPS) manufacturer TomTom, Siemens and Huawei. U.S. investment fund Oaktree Capital acquired it in August 2021.
Government, industry, school cooperation
Companies currently in Eindhoven are mainly developing artificial intelligence, quantum computing and photonics, that is, microchips that are driven by light, not electricity.
Smart Photonics CEO Johan Feenstra bluntly said, "This is the smartest region in the world," and the company uses the old clean room left by Philips to build a photonic chip production line, which can help reduce the power usage of data centers and can also be deployed in remote areas. Smart Photonics has raised €38 million from Dutch investors and employs nearly 150 people.
Robert-Jan Smits, president of Eindhoven University of Technology, believes that there are many benefits to engaging students in projects and implementing projects. "Eindhoven is a unique place where I can meet CEOs, politicians a lot, and I'm right away from ASML, Philips and NXP headquarters by bike."
Speaking about the place in Eindhoven, Smits said, "We were born for this region and grew up with it here. Our job is not to make ASML bigger, but to create more ASML. ”
Eindhoven, which expects to create 70,000 jobs over the next 10 years, has asked the government for funding to expand schools, add practical skills training and build more houses.
Eindhoven Mayor Jeroen Dijsselbloem said the city he manages would have "unique potential" if government funding, and as the EU seeks to reduce its dependence on U.S. and Chinese technology, Europe doesn't really have as many options, one of which is definitely here.
Editor: Xinzhixun-Lin Zi Source: FT