NXP Semiconductors N.V. (NXP) announced that it has secured a EUR 1 billion loan from the European Investment Bank (EIB) to bolster its research, development, and innovation (RDI) initiatives across its semiconductor solutions portfolio.
The loan, which carries an interest rate of around 4.75% when drawn in U.S. dollar-denominated tranches, has a term of six years. It will fund NXP’s RDI activities in Austria, France, Germany, the Netherlands, and Romania until 2026. This financing is part of the EIB’s new ‘Strategic Tech-EU’ investment program, which aims to foster digital transformation and innovation in key technologies such as artificial intelligence (AI), microchips, life sciences, and quantum computing.
Related: European Commission Backs EUR 5 Billion for New German Semiconductor Plant
Semiconductors for Sustainability
“It is fundamental for Europe to remain an indispensable player in the value chain of critical technologies and build RDI and production capacity in those supply chains,” stated EIB Vice President, Robert de Groot. “Luckily, the EU boasts some of the world’s most advanced chip makers. As semiconductors are key to the digital and green transitions, their importance will only grow, and the EIB proudly supports such strategic technology.”
NXP’s research and development teams throughout Europe remain dedicated to advancing next-generation automotive processors, cutting-edge radar solutions, enhanced energy and driver systems, in-vehicle networking, and secure car access.
Additionally, their work spans other critical intelligent edge technologies, including artificial intelligence, secure edge identification, Near Field Communication (NFC) wallets for mobile phones and smart wearables, and other devices that enhance quality of life and support sustainability initiatives.
Interesting Read: Turning Down the Heat: New Discovery Fuels the Future of Electronics
Strengthening Market Dominance
Maarten Dirkzwager, Executive Vice President and Chief Strategy Officer at NXP, stated that the EIB loan will support the company’s R&D across Europe, reinforcing its commitment to European semiconductor leadership and sustainability. He added that the loan complements initiatives like the IPCEI and NXP’s investment in the ESMC fab in Germany, which will address Europe’s automotive and industrial chip needs.
The investment will help develop an advanced European chip ecosystem, aligning with the EU Chips Act, the Dutch Semicon Valley, and the Netherlands’ National Technology Strategy, all of which will strengthen the EU semiconductor market and ensure a secure, competitive chip supply. In addition to the R&D of new power electronics, microprocessors, and microcontrollers, NXP will prioritize improving the energy efficiency of its devices.