The Netherlands excels in the global AI supply chain thanks to its chip industry
Artificial intelligence (AI) has grown significantly over the past decade and is now widely used within the Dutch economy. The development of AI models requires physical inputs, including chip manufacturing equipment, chips, servers and the associated raw materials and chemicals. Production of these is heavily concentrated in a limited number of countries and companies. Countries without their own production capacity can only gain access to the necessary hardware through international trade.
The export of AI goods
We measure exports of AI goods using a list of approximately 100 product codes for ‘AI-enabling’ goods published by the World Trade Organisation (WTO). These goods include the raw materials, semi-finished products and equipment that support the development and production of AI technologies.
Globally, USD 3.1 trillion worth of AI-related goods were exported in 2024. This represents a threefold increase compared with ten years earlier. The largest exporters of AI-related goods are located in East Asia, notably China, Hong Kong, Taiwan, Singapore and South Korea. Countries in Asia dominate the global AI value chain and account for 65% of global exports of AI goods.
The Netherlands ranks eleventh among the leading exporters of AI goods, with an export value of EUR 87 billion (see Figure 1).
Dutch exports of AI goods
The following two products dominate the Dutch export value of AI goods:
- 848620: Machinery and apparatus for the manufacture of semiconductor devices or circuits, or of electronic integrated circuits.
- 851762: Apparatus for the reception, conversion and transmission or regeneration of speech, images or other data, including switching equipment and routing apparatus.
These two product codes alone account for a total export value of EUR 37 billion, or 42% of the Netherlands’ total exports of AI goods.
The first product code (848620) refers to machines for the manufacture of chips. The Netherlands has a strong position within this category thanks to ASML, which is the world’s sole supplier of EUV (Extreme Ultraviolet) lithography machines. These machines are essential for the production of the most advanced AI chips.
Another benchmark: the degree of specialisation
In addition to export value, the Netherlands’ position in the AI supply chain can also be examined through the lens of the degree of specialisation. We do this using the Revealed Comparative Advantage (RCA) index. The RCA index compares the share of a particular product code in total national exports with the share of that product code in global exports. An RCA greater than one indicates a comparative advantage over other countries, whilst an RCA less than one indicates a comparative disadvantage.
Figure 2 shows the RCA index for the ten products in which the Netherlands has the highest degree of specialisation.
The manufacture of chip production machines stands out as the product in which the highest degree of specialisation is achieved. In addition, a high degree of specialisation is also achieved in the production of components for chip production machines. Partly thanks to ASML, the Netherlands has a broad ecosystem of specialised companies that supply components for the AI hardware chain. Examples include VDL as a supplier of ASML components, and ASM International (ASMI) and Besi as more independently operating players in the global AI chain.
Furthermore, the Netherlands has a high degree of specialisation in certain processed chemicals and materials required for the high-precision manufacture of chips, such as acyclic ethers (and their derivatives) and argon (a noble gas). The Netherlands also has a strong specialisation in silicon carbide, a crucial material for power electronics and the physical infrastructure of data centres. This position in chemicals is due to an integrated ecosystem in which the chemical industry and the semiconductor sector reinforce one another.
Finally, the Netherlands holds a strong position in data-transfer hardware (including network switches and routers), servers and computers. As noted earlier, the high level of specialisation in this category of goods is primarily due to the Netherlands’ role as a logistics hub for exports to the rest of Europe.
Conclusion
Within the global AI supply chain, the Netherlands excels particularly in the production of chip-making machinery. This is thanks to ASML, which is the world’s sole supplier of the EUV lithography machines required for the production of advanced AI chips. Furthermore, the degree of specialisation shows that the Netherlands holds a strong position in several raw materials required for chip production, such as acyclic ethers (and their derivatives), argon and silicon carbide. Finally, the Netherlands plays a role in the export of hardware such as switches, routers, computers and servers, benefiting in particular from its role as a logistics hub.
Theo Smid – Senior Economist