In its budget officially released today, the Dutch caretaker government has set out its plan to invest nearly half a billion euros extra in the Dutch tech industry. The government says these investments, targeted at companies engaged in high-value technology, are of strategic importance for retaining the Netherlands’ prominent place in the global tech sector.
Huge investment in semiconductor industry
The Dutch semiconductor industry is set to receive 230 million euros, invested in an ‘Important Project of Common European Interest’ (IPCEI). It has been agreed that these funds will be reinvested in projects in the Netherlands. The Dutch government is keen for the country to seize the opportunities of the transforming chip industry and a wave of emerging semiconductor applications. In view of current geopolitical shifts, it is also important to avoid reliance on Chinese, US and other foreign tech.
The Netherlands has a highly developed semiconductor industry, home to the world-leading ASML and other big names such as NXP Semiconductors, Nexperia, Besi and Ampleon. Strong collaborative ties between business, knowledge institutes and the public sector have helped to build this mature ecosystem. The Netherlands also engages in international partnerships in EU programmes, being a key contributor to the European Chips Act, and maintains various bilateral partnerships with countries such as Singapore and the USA.
Major challenges facing the Netherlands include value chain dependencies (the country relies on foreign chip and materials manufacturers to mass-produce specific chips), a shortage of highly skilled specialists as well as political and geopolitical risks, such as current export restrictions. Foundries for the most advanced chips are also capital-intensive, with infrastructure development (e.g. energy, housing for staff, transport) struggling to keep pace some cases.
Seven Digital and Information Technologies
Strengthening the Dutch semiconductor industry has major benefits for the seven Digital and Information Technologies overseen by Topsector ICT. These technologies are essential for developing new products, processes and services and also have a disruptive influence on existing industries. Integrating Digital and Information Technologies such as artificial intelligence (AI) and data analysis can enable companies in the semiconductor industry to accelerate product and process development, in turn driving innovation, while also making the country more competitive. Applying Digital Technologies can improve efficiency and performance, giving Dutch semiconductor manufacturers an edge in the international market, and support the sustainable growth of the semiconductor industry. Additionally, seeking ways to use emerging technologies can open up new markets and applications, driving industrial diversification and expansion.
200 million for scaling startups
The Dutch caretaker government is also seeking to increase the impact of European venture capital funds, allowing them to invest more in European growth companies and reduce their dependence on non-European funding. A total of 200 million euros has been earmarked for the European Tech Champions Initiative (ETCI). This money, which will be reinvested in Dutch projects, will enable a huge number of young and promising tech start-ups to scale.
There is a scale-up gap between European and the US start-ups, a situation primarily caused by a lack of funding. This is according to a report by Techleap. Alongside a 23% drop in the number of start-ups last year, the report also revealed that larger funding rounds are increasingly dominated by non-Dutch investors.
The National Growth Fund
The 430 million euros earmarked for investment in the Dutch tech industry (230 million for the semiconductor industry and 200 million for scaling tech start-ups) is drawn from the Dutch Ministry of Economic Affairs’ budget. A large part will be sourced from funds from the National Growth Fund (NGF) left unspent after it was phased out in 2024. The NGF, set up in 2020, contained 20 billion euros for projects promoting sustainable economic growth in the Netherlands. The fourth and fifth funding rounds in the NGF were scrapped under the Framework Coalition Agreement in May 2024. A portion of the unspent funds will now be used for other investments.
Dutch King addresses digital transformation
In his speech marking the state opening of parliament, Dutch King Willem-Alexander discussed the topics of technology and innovation, mentioning the opportunities presented by the rapid emergence of AI while outlining how to limit the risks. His Majesty also focused on growing cybersecurity risks and the importance of a strong, competitive economy in the face of trade tariffs and a shifting centre of gravity in the global economy.
“These are major issues for which there are no quick and easy answers, but which the government and parliament must address. In this sense, and given the widespread uncertainty, it is wise for us to remember that life can only be understood by looking to the past, but must be lived with our sights set on the future. This means that politicians and society must continue to think and act as if the future were now. This is especially important given the upcoming elections.”
His Majesty also stated that current economic growth is too weak to maintain the country’s living standards in the future. “That is why it is particularly worrying that more and more business owners are feeling negative about our investment climate. These concerns are being expressed across the board and must be heeded. A company’s decision to lower investment or relocate abroad has knock-on effects on our earning capacity as a country. Cutting red tape therefore remains a matter of urgency. In order to consolidate the country’s future earning capacity, the government will continue its work on setting up a national investment institution while investing heavily in the semiconductor industry.”
Budget Memorandum on red tape and business climate
The Budget Memorandum and the Ministry of Economic Affairs’ National Budget also set out how the government intends to create a strong, innovative and resilient economy for business. In 2026, the government will slash red tape on 500 rules aimed at businesses. Slashing red tape will also be a focus topic at the next nationwide summit for Dutch businesses, OndernemersTop. The event will include a hackathon for businesses and government to join forces in reducing bureaucracy.
As the government wants businesses to have the physical space to set up shop and grow in the Netherlands, it will pursue the plans set out in the Vision for Spatial Economic Planning. Under the plans, areas that are home to industries of national or international interest, such as knowledge regions, will be protected.
AI Factory
The government wants to reduce economic dependence on foreign companies and has therefore earmarked 128 million euros for an AI factory. This is part of collaboration with the municipalities in Noord-Drenthe, the provincial government of Groningen and European partners. The factory offers opportunities for businesses, researchers and the public sector to experiment with AI applications.
The government is investing over 11 billion euros from the National Growth Fund into knowledge and innovation, both key elements for maintaining future living standards and economic growth. It is also investing over 100 million euros to stimulate diplomacy and trade through programmes such as the Dutch Good Growth Fund and DRIVE, which facilitate trade between emerging economies and with the European and Dutch market. Trading with more countries and reaching clear agreements on raw materials and technology will reduce dependencies while boosting economic resilience.
National security: investing in digital technologies
The Dutch armed forces’ ability to protect and defend the Netherlands and NATO allies hinges on having access to effective, future-proof combat power. The government is therefore investing heavily in modern equipment and digital technologies, spending 1.5 billion euros on combat power over the coming years. The Ministry of Defence’s 2024 Memorandum sets out additional investments in air and rocket defence systems, military sustainability and accelerated implementation plans. The Digital Transformation Strategy describes the Ministry of Defence’s digital transformation spearheads.
Facing growing threats in Europe, the Dutch government is aware that a strong and highly innovative defence industry can be a deterrent to attacks and is therefore investing 1.1 billion euros in the industry. The Defence Strategy for Industry and Innovation (D-SII) 2025-2029 sets out how these funds will be spent.
Topsector ICT’s view
Frits Grotenhuis, director of Topsector ICT, welcomes the announcement of additional investments in the Dutch tech sector. He hopes a new government will remain committed and focus on introducing fresh policies to boost the digital sector and drive innovation. “Investments in knowledge and innovation for the digital transformation are crucial for our security, economy and future society. Topsector ICT is reassured that the government realises and is committed to this, as shown by its broad vision for start-ups, cutting red tape, business climate, ICT infrastructure and European collaboration. In light of the new geopolitical uncertainties we’re currently facing, oversight and collaboration will be essential over the coming years.”