10 most important trends in the semiconductor industry

The Netherlands boasts a collaborative ecosystem where universities, research institutes, and industry leaders work together to drive semiconductor innovation. The Brainport Eindhoven region exemplifies this, with ASML, NXP Semiconductors, and institutions like TU Eindhoven closely collaborating. This synergy accelerates technological advancements and solidifies the country’s global position in the semiconductor market.

The Netherlands is a global leader in advanced semiconductor manufacturing equipment, primarily due to ASML’s role as the sole producer of extreme ultraviolet (EUV) lithography machines. This focus on high-value equipment manufacturing solidifies the country’s position as a key player in global chip production.

“Developing highly complex systems and solutions is something the Netherlands excels in, which is reflected in our strong position in creating advanced, high-complexity equipment.”

Marsha Nieuwland, Consultant, TNO

 

There’s a growing focus on photonics and integrated circuits, with Dutch companies and research institutions at the forefront of developing these technologies for next-generation semiconductors.

Photonic chips provide superior energy efficiency and speed over traditional circuits, leading to telecommunications and data processing innovations. While the Netherlands has committed €2.5 billion to strengthen its semiconductor industry, other countries are making significantly huge investments, with France allocating €5 billion by 2030, the U.S. investing $52 billion through the CHIPS Act, and South Korea pledging €430 billion over two decades to secure a substantial share of global chip production.

This expansion will likely create new opportunities for innovation in integrated circuits, which are essential for various applications ranging from consumer electronics to industrial automation.

“The future of connectivity is in photonics, and the Netherlands can play a huge role in this area. We also have centres like Delta for quantum computing, which is extremely important for the industry.”

Del Maffeo, CEO, Axelera AI

 

Complementing photonics is quantum technologies, with centres like Delta spearheading quantum computing advancements. Advancements in quantum technologies have the potential to revolutionise semiconductor applications, including ultra-secure communications and next-gen computational capabilities.

This overlap between photonic, quantum and semiconductor supply chains drives innovation in high-speed data transmission and integrated circuit design. The Dutch government’s investment in photonics and quantum research strengthens the Netherlands’ position as a central player, with the global semiconductor market projected to surpass $1.5 billion by 2026.

The industry increasingly adopts sustainable practices and develops green semiconductor technologies, aligning with the global demand for greener tech solutions.

“The drive for sustainability is not just a local trend but a global one. Our focus on reducing power consumption and extending chip lifespan is part of a larger movement  towards creating more eco-friendly technology solutions.”

Jerald Delos Santos, Application Engineer Qualinx

 

Jerald feels there’s a global push to offer advanced functionality and integrate more features with lower power usage, and the Netherlands is leading this trend.

NXP Semiconductors has advanced energy-efficient chip technology for automotive and IoT applications; ASML focuses on cutting energy use and increasing renewable energy in its operations. Additionally, the Dutch semiconductor industry is pursuing renewable energy use and waste reduction in production, aligning with EU Green Deal goals.

As demand for skilled professionals grows, the Netherlands prioritises talent development and retention in the semiconductor industry through specialised education programs and industry partnerships. Technical universities produce thousands of engineers annually, and companies provide competitive packages to retain top talent, supporting efforts to address the global talent shortage in microelectronics.

Initiatives like the “Highly Skilled Migrant Permit” and “Operation Beethoven” aim to enhance skills training and attract and retain skilled professionals from other countries. The sector’s growth necessitates a continuous influx of qualified professionals to support innovation and expansion.

The Netherlands invests in research and development (R&D) to maintain its competitive edge in semiconductor technology, especially in areas like quantum computing and artificial intelligence. The government has allocated €230 million for strategic R&D projects, driving innovation and ensuring Dutch companies stay at the forefront of advancements, from AI-integrated chips to high-tech manufacturing processes.

The Dutch government provides substantial support through funding and policy frameworks to bolster the semiconductor industry, recognising its strategic importance to the national economy.

“We need to be more strategic with public funding for tech industries, similar to what France and Germany are doing. The government should focus on creating multiple ASMLs, not just one, to secure the semiconductor industry’s future here.”

Del Maffeo, CEO, Axelera AI

 

Programs like the National Growth Fund and partnerships with the European Union ensure that the semiconductor sector receives substantial financial backing for research, innovation, and scaling up production. The European Chips Act aims to strengthen the entire European semiconductor ecosystem, with the Netherlands at the forefront.

The Netherlands is enhancing its semiconductor supply chain resilience by boosting domestic manufacturing and securing essential resources. In response to the global chip shortage, Dutch companies invest in supply chain diversification to mitigate risks from international trade tensions. This strategy aims to strengthen the industry’s ability to tackle challenges while maintaining competitiveness.

Digitalisation is transforming the semiconductor manufacturing landscape, with the rising adoption of Industry 4.0 principles to increase efficiency and productivity within production processes.

“How can we leverage AI in our design process to enhance efficiency and manage the increasing complexity of the systems?”

Marsha Nieuwland, Consultant, TNO

 

Smart factories and automation tools optimise production efficiency and reduce waste. Companies are leveraging AI, IoT, and advanced data analytics to streamline processes, optimise operations and reduce time-to-market for new products.

Dutch semiconductor companies increasingly engage in international collaborations and partnerships to expand their global reach and access new markets. Partnerships with countries like Japan, Taiwan, and the United States facilitate knowledge exchange and technological advancements.

"The government could be a customer and partner for semiconductor companies, just like DARPA in the United States. This collaboration would help the sector by creating revenue opportunities for companies and speeding up innovation, development and deployment."

Del Maffeo, CEO Axelera AI

 

These trends reflect the dynamic nature of the country’s semiconductor industry, highlighting its focus on innovation, sustainability, and global competitiveness.

The Dutch semiconductor industry offers diverse career opportunities backed by world-class research institutions, a favourable investment climate, generous R&D tax incentives, forward-thinking government policies, and strategic regional hubs. Entrepreneurs like Fabrizio Del Maffeo, who democratise AI by creating efficient hardware solutions, exemplify this growth. With supportive government investment in research and development and a commitment to innovation, the Netherlands is an attractive destination for professionals and entrepreneurs ready to embrace new challenges in this dynamic field.