FILE PHOTO: ASML logo is seen near computer motherboard in this illustration taken January 8, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
AMSTERDAM (Reuters) - Semiconductor production equipment maker ASML may continue with an expansion under way at its headquarters in Veldhoven, the Netherlands' Council of State ruled on Wednesday, rejecting objections from two neighbours.
The country's highest administrative court said complaints that the new facilities would lead to traffic and noise problems were insufficient grounds to stop or alter the project, which was approved by Veldhoven's town council in 2022.
The court said that suggestions the company could build its facilities partly below ground would not work in practice because of the delicate nature of the large machines ASML will assemble at the site.
"Before components are stabilised and packaged, any unexpected movement would wreck the machine," judges said in their decision.
The Veldhoven expansion is intended to meet ASML's near-term growth needs.
The company signed a letter of intent in April regarding a larger expansion project in an undeveloped area in the north of the neighbouring city of Eindhoven large enough to house 20,000 additional workers from around 2030.
(Reporting by Toby Sterling; editing by Jason Neely)
