Chip machinery maker ASML is planning a major expansion in the Eindhoven region, putting rumours it may leave the Netherlands to bed and adding up to 20,000 workers to its local workforce.

The company and Eindhoven city council on Monday signed a non-binding statement of intent, including a commitment to develop the northerly part of the “Brainport” industrial area where much of the city’s high tech industry is concentrated.

Last month the government announced a €2.5 billion package of measures for the region after ASML’s chief executive Peter Wennink slammed the investment climate and lack of political stability in the Netherlands.

A final decision on the project will be taken by city officials on by June 11 and work is slated to begin on the development in 2027.

“We are now confident that we are welcome in the Netherlands,” an ASML  spokesman told the Financieele Dagblad.

“But a few crucial things need to be solved before we take the definitive decision to base ourselves in Eindhoven. These include the availably of energy, housing, transport connections and the nitrogen issue.”

Economic affairs minister Micky Adriaansens said the agreement is “good news” which “shows confidence in our business climate and the support the government is giving to the chip sector.”

ASML currently employs some 20,000 people in the Netherlands and a further 23,000 elsewhere.