To support research, development, and innovation projects in Austria, France, Germany, the Netherlands, and Romania, NXP Semiconductors N.V. (NXPI, Financials) said it has obtained a €1 billion loan from the European Investment Bank. Denominated in US dollars, the loan with an estimated interest rate of 4.75% will help NXP's semiconductor projects until 2026.

The finance fits the EIB's "Strategic Tech-EU" investment initiative, which underlines as part of the EU Chips Act the advancement of key technologies such artificial intelligence, microchips, and quantum computing. Essential for digitization, semiconductors are also very important for sustainability and decarbonizing initiatives.

The European R&D teams of NXP will concentrate on next-generation automotive processors, improved radar systems, energy-efficient gadgets, and secure edge technologies like NFC wallets and artificial intelligence-driven solutions. The business also emphasized its investment in the German ESMC joint venture fab, which aims at manufacturing industrial and automotive chips.

Complementing current EU and member state initiatives as the Dutch Semicon Valley and the Important Projects of Common European Interest (IPCEI), this effort supports Over €27 billion in funding for Dutch initiatives over the last ten years has come from the EIB, therefore highlighting its commitment to RDI across Europe.

With operations in more than thirty countries, NXP projected $13.28 billion in revenue in 2023. With an eye on sustainability, the company's initiatives seek to maintain Europe's leadership in the worldwide semiconductor industry.