Dutch cabinet to invest half a billion in tech
The outgoing government will fund semiconductors and will assist companies that need to scale up.
Published on September 12, 2025
Research and Development, © ASML
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The Dutch government is investing nearly €500 million to support the tech industry, with €230 million allocated to the semiconductor industry and €200 million to help startups scale up, reports the national broadcasting company NOS. This strategic move aims to maintain the Netherlands' prominent role in high-tech sectors and reduce its reliance on other countries, such as China, for critical technologies. The investments are part of the 2025 Prinsjesdag, the annual budget day.
Of the total investment, €230 million is earmarked for the semiconductor industry. These funds will be channeled through an Important Project of Common European Interest (IPCEI), ensuring that the investments are strategically directed back into Dutch projects. The government aims to bolster the chip industry amidst rapid technological advancements and to prevent over-reliance on nations like China for essential technologies. An additional €200 million will be invested in the European Tech Champions Initiative (ETCI) to support emerging tech companies, specifically aiding startups in scaling up their operations. This initiative addresses the capital shortage that often hinders the growth of European startups compared to their counterparts in the United States.
Funding strategy
The €430 million investment is drawn from the Ministry of Economic Affairs' budget, primarily sourced from the National Growth Fund, which was established in 2020 with an initial capital of €20 billion to invest in sustainable corporate initiatives. This allocation is part of a broader effort to boost innovation in the Netherlands, where current R&D investments stand at 2.2% of the GDP, lagging behind leading countries such as the US, South Korea, Germany, Austria, Belgium, and Sweden. Without intervention, this percentage is projected to decline to 2%. Minister Karremans of Economic Affairs has emphasized that the Netherlands is falling behind in targeted technology and resilience investments, which are leading to dependencies and jeopardizing the country's economic security.
To address this, the Dutch cabinet has committed to the '3% R&D Action Plan,' aiming to invest 3% of its GDP in R&D by 2030, requiring €14.9 billion in public investment to reach this goal. This plan encompasses nine strategic actions, including enhancing the commercialization of scientific ideas, addressing the shortage of technical talent, establishing an EU co-financing facility, optimizing existing R&D schemes, and creating a National Investment Institution focused on innovation. These measures collectively seek to stimulate both public and private investments in knowledge-intensive companies, ensuring that the Netherlands can effectively translate its specialized knowledge into market success.
