For its research, development, and innovation (RDI) projects in Austria, France, Germany, the Netherlands, and Romania, NXP Semiconductors obtained a EUR 1 billion loan from the European Investment Bank (EIB).
Up to 2026, the funding will help NXP’s RDI projects targeted at a range of end markets, such as the automotive, industrial, and Internet of Things (IoT) sectors.
It will help create a European chip ecosystem in accordance with the EU Chips Act, the Dutch Semicon Valley, and the Dutch government’s National Technology Strategy, which aims to fortify the EU semiconductor market in order to guarantee a safe and competitive supply of chips.
According to the company, NXP will concentrate on improving the energy efficiency of its devices in addition to researching and developing new power electronics devices, microprocessors, and microcontrollers.
Under current market conditions, the EUR 1 billion loan facility has a six-year tenor and an approximate interest rate of 4.75 percent when drawn in dollar-denominated tranches.
The EIB’s introduction of a focused “Strategic Tech-EU” investment initiative to promote digitalization and innovation in strategic technologies, including artificial intelligence, microchips, life sciences, and quantum computing, is in line with the funding of vital European technology.
According to the EIB, semiconductors play a key role in both public and private initiatives to promote decarbonization and sustainability initiatives since they are essential to the digitalization of numerous industries.
Key Comments
“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,” EIB vice president Robert de Groot said. “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 is committed to strengthening Europe’s semiconductor ecosystem, and this significant loan from EIB aims at bolstering NXP’s efforts in research and development across many of our EU sites,” said Maarten Dirkzwager, Executive Vice President and Chief Strategy Officer at NXP.
“NXP’s collaboration with the EIB underscores our commitment to ensuring European technology leadership and sustainability in the global semiconductor market. This loan complements the various existing instruments supporting our industry, such as the Important Projects of Common European Interest (IPCEI) and other initiatives currently being set up by the European Commission and the Member States. It is also consistent with our investment in the ESMC joint venture fab currently being built in Germany, which will address Europe’s automotive and industrial chip requirements, added Maarten.”
With operations in over 30 nations, NXP Semiconductors reported $13.2 billion in revenue in 2023. Its presence in Romania is concentrated on IT service management, customer supply operations, and software development for automotive, microcontroller, and connectivity devices.
