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Here is some more information about one of the schemes where Dutch law helps avoiding taxes: https://en.wikipedia.org/wiki/Dutch_Sandwich

Small countries like NL and Ireland don't really have a choice. Without giving tax incentives multinationals would just choose the bigger markets (China, U.S, India, Germany maybe). Is it "fair" that the U.S and China dominate everything between themselves?

NXP originated from Philips afaik, so it is a by product of a Dutch company. Why would headquarters move elsewhere?

Are you thinking about STMicroelectronics perhaps? They are incorporated in the Netherlands.

NXP has a long history in the Netherlands. It started as a division within Philips (Dutch company) and it has done a lot of production work in the Netherlands.

Maybe true, a lot of NXP projects actually happen in Austria for example