Eindhoven-based NXP Semiconductors N.V., a semiconductor company building solutions for embedded applications, announced a €1B loan agreement with the European Investment Bank (EIB).
NXP Semiconductors’ loan has a six-year duration and an interest rate of nearly 4.75 per cent for dollar-denominated tranches under current market conditions.
EIB vice president, Robert de Groot says, “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.”
“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.”
The investment will support the development of a European chip ecosystem aligned with the EU Chips Act, the Dutch Semicon Valley, and the Netherlands’ National Technology Strategy. It aims to strengthen the semiconductor market in the EU for a competitive chip supply.
NXP will focus on research and development of power electronics devices, microprocessors, microcontrollers, and energy efficiency improvements.
What do NXP Semiconductors offer?
NXP Semiconductors provides solutions for the automotive, industrial and IoT, mobile, and communications infrastructure markets. Its “Brighter Together” approach combines technology and people to develop system solutions for the connected world.
The company’s European research and development teams are focused on creating automotive processors, automotive radar solutions, energy and driver systems, in-vehicle networking, and secure car access.
They also focus on intelligent edge technologies, including artificial intelligence, secure edge identification, NFC wallets for mobile devices and wearables, and other technologies that support sustainability efforts.
The company operates in over 30 countries and reported revenue of $13.28B in 2023.
Capital utilisation
The funding will support NXP’s research and development activities in EU Member States, carried out at its facilities in Austria, France, Germany, the Netherlands, and Romania until 2026.
The financing also supports the EIB’s “Strategic Tech-EU” investment programme aimed at advancing digitalisation and innovation in technologies including artificial intelligence, microchips, life sciences, and quantum computing.
Maarten Dirkzwager, Executive VP and Chief Strategy Officer at NXP, says, “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. 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.”
Brief about EIB
The European Investment Bank (EIB) is the lending institution of the European Union, owned by its Member States, with the Netherlands holding a 5.2 per cent share.
It provides long-term financing for investments aligned with EU policy goals and national priorities, with over 90 per cent of its activity focused in Europe.
In the past decade, the EIB has provided over €27B for Dutch projects in sectors such as research and development, mobility, water, healthcare, and SMEs.
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