NXP Secures €1 billion EIB loan to advance semiconductor innovation in Europe
Chip manufacturer NXP receives a €1 billion loan from 'Europe'. The money allows NXP to invest in research, development and innovation of the new generation of chips.
Published on January 15, 2025
NXP Cleanroom, © Nadia Ten Wolde
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NXP Semiconductors announced in a press release that it has secured a €1 billion loan from the European Investment Bank (EIB) to advance the company’s RDI investments across its broad portfolio of semiconductor solutions. The €1 billion loan facility carries an approximate interest rate of 4.75 percent when drawn in dollar-denominated tranches under the current market conditions and lasts six years. The financing will support NXP’s research and development efforts in several EU Member States, which will be implemented in its facilities in Austria, France, Germany, the Netherlands, and Romania up to 2026.
Strategic Tech-EU
The financing of critical European technology aligns with the EIB’s launch of a targeted “Strategic Tech-EU” investment program to accelerate digitalization and innovation in strategic technologies, such as artificial intelligence, microchips, life sciences, and quantum computing.
“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 grow, and the EIB proudly supports such strategic technology.”
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Next-generation digital solutions
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 crucial intelligent edge technologies such as artificial intelligence (AI), secure edge identification, Near Field Communication (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,” 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."
The investment will contribute to building a state-of-the-art European chip ecosystem, in line with the EU Chips Act, the Dutch Semicon Valley, and the National Technology Strategy of the Netherlands’ Government, whose scope is to strengthen the semiconductor market in the EU to ensure a secure and competitive supply of chips. Apart from the pure research and development of new power electronics devices, microprocessors, and microcontrollers, NXP will also focus on the energy efficiency of its devices.
EIB: long-term lending institution of EU
European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by its Member States. The Netherlands owns a 5,2% share of the EIB. It makes long-term finance available for sound investment to contribute towards EU policy goals and national priorities. More than 90% of its activity is in Europe. Over the last ten years, the EIB has made more than €27 billion available in financing for Dutch projects in various sectors, including research & development, sustainable mobility, drinking water, healthcare, and SMEs.