NXP secures €1B EIB loan to advance semiconductor innovation
NXP Semiconductors has secured a EUR 1 billion loan from the European Investment Bank (EIB) to advance the company’s RDI investments across its broad portfolio of semiconductor solutions.
NXP says that the financing will support the company's research and development efforts in several EU countries – implemented in its facilities in Austria, France, Germany, the Netherlands and Romania up to 2026.
The EUR 1 billion loan facility carries an approximate interest rate of 4.75% when drawn in dollar denominated tranches, under the current market conditions and has a duration of six years.
The financing of critical European technology aligns with the EIB’s launch of a targeted “Strategic Tech-EU” investment programme to accelerate digitalisation and innovation in strategic technologies, such as artificial intelligence, microchips, life sciences and quantum computing.
NXP research and development teams across Europe are focused on creating the next generation of automotive processors, advanced automotive radar solutions, improved energy and driver systems, in-vehicle networking, and secure car access, in addition to other equally important intelligent edge technologies such as AI, secure edge identification, NFC wallets for mobile phones and smart wearables, and other devices which improve quality of life and further sustainability efforts.
“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,” says Maarten Dirkzwager, Executive Vice President and Chief Strategy Officer at NXP, in a press release.
The investment supports the EU Chips Act, the Dutch Semicon Valley, and the Netherlands' National Technology Strategy, aiming to strengthen Europe's semiconductor market and secure chip supply. NXP will focus on R&D for power electronics, microprocessors, and microcontrollers, and also on energy efficiency of its devices.
“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,” Maarten Dirkzwager continues.
