Chipmaker NXP gets 1 billion euro loan from EIB for European projects

NIGEGEN, Netherlands (Reuters) – Netherlands-based computer chip maker NXP said on Wednesday it has secured a 1 billion euro ($1.03 billion) loan from the European Investment Bank (EIB) to fund research and development projects in five European countries.

The European Union’s long-term lending institution, the EIB, said the loan was part of an investment program launched last year aimed at strengthening Europe’s position in strategic technologies, including microchips and artificial intelligence.

NXP, one of the largest makers of semiconductors used in cars, will draw on a six-year loan facility that carries an interest rate of 4.75% for projects in Austria, France, Germany, the Netherlands and Romania, he said.

In addition to pure research and development of new power electronic devices, microprocessors and microcontrollers, NXP also focuses on the energy efficiency of its devices, he said in a statement.

EIB managing director Robert de Groot said in a statement that Europe “must remain an important player in the value chain of critical technologies”.

“Semiconductors are key to the digital and green transition.”

Earlier this month, NXP announced the $625 million acquisition of Austria’s TTTech Auto.

($1 = 0.9710 EUR)

(Reporting by Toby Sterling; Editing by Thomas Janowski)