NIJMEGEN, Netherlands (Reuters) – Dutch computer chip manufacturer NXP disclosed on Wednesday that it has secured a 1 billion euro ($1.03 billion) loan from the European Investment Bank (EIB) to bolster research and development initiatives across five European nations.
The EIB, functioning as the long-term lending arm of the European Union, clarified that the loan forms part of an investment program launched last year with the objective of enhancing Europe’s standing in critical technologies, notably microchips and artificial intelligence.
NXP, renowned for its production of semiconductors utilized in automotive applications, revealed its intention to tap into the six-year loan arrangement, featuring a 4.75% interest rate, to fund projects in Austria, France, Germany, the Netherlands, and Romania.
In addition to focusing on the advancement of innovative power electronics devices, microprocessors, and microcontrollers, NXP emphasized its commitment to improving the energy efficiency of its products, as articulated in an official statement.
Highlighting the imperative for Europe to maintain its pivotal role in the value chains of essential technologies, EIB manager Robert de Groot underscored the significance of semiconductors in propelling the digital and green transitions.
Earlier this month, NXP announced its acquisition of Austria’s TTTech Auto for $625 million. ($1 = 0.9710 euros)
(Reporting by Toby Sterling; Editing by Tomasz Janowski)
