R&D spending by Dutch mid-sized chip companies is lagging

Dutch mid-sized semicon players aren’t keeping up with the R&D spending growth of the big guys. A study by PwC shows that this group is spending less on R&D per euro of revenue over the past year, while ASML, NXP, Nexperia, ASM and Besi have increased their R&D intensity (link in Dutch). This outcome is an average, as some mid-sized companies did start investing more.

“The R&D share of mid-sized semicon companies in the Netherlands fell from 26 percent in 2018 to 17 percent in 2024. This will further halve to 11 percent by 2030. This brings the deficit of private R&D investments by these medium-sized companies between now and 2030 to a total of more than 200 million euros,” says Joost Eyck, one of the authors of the PwC report.

Increased margin pressure is a key factor explaining the trend. Talent and growth constraints are also causing R&D activities to lag behind or move abroad. PwC advises companies to address operational inefficiencies and reevaluate their portfolio to alleviate margin pressure. In addition, the consultancy sees a role for the government in strategic co-funding.