NXP Semiconductors N.V. has secured a €1 billion loan from the European Investment Bank (EIB) to enhance research, development, and innovation (RDI) across its semiconductor operations in multiple European countries, including Austria, France, Germany, the Netherlands, and Romania.

This funding, which carries an approximate interest rate of 4.75% and spans a six-year duration, aims to bolster NXP's RDI initiatives targeting automotive, industrial, and Internet of Things (IoT) markets. The loan aligns with the EIB's Strategic Tech-EU investment programme, which seeks to expedite digitalisation and innovation in strategic technologies like artificial intelligence, microchips, and quantum computing.

Robert de Groot, EIB vice president, emphasized the necessity for Europe to maintain its role in critical technology supply chains, noting that semiconductors are pivotal for achieving digital and green transitions. NXP aims to develop the next generation of automotive processors and advanced radar solutions as part of this commitment.

Maarten Dirkzwager, Executive Vice President and Chief Strategy Officer (CSO) at NXP, highlighted that this loan supports Europe's semiconductor ecosystem and emphasizes the company's commitment to technology leadership and sustainability within the global semiconductor market. The investment will also focus on enhancing energy efficiency in new power electronics and microcontrollers.

This initiative reflects the company’s alignment with the EU Chips Act and aims to support various projects including those under the Important Projects of Common European Interest (IPCEI) and establish a robust semiconductor manufacturing base in Europe.