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NIJMEGEN, 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 support research and development projects in five European countries.
The EIB, the European Union’s long-term lending institution, said the loan was part of a investment programme it 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, said it would draw on the six-year loan facility, which carries a 4.75% interest rate, for projects in Austria, France, Germany, the Netherlands and Romania.
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, it said in a statement.
Europe must “remain an indispensable player in the value chains of critical technologies,” EIB manager Robert de Groot said in a statement.
“Semiconductors are key to the digital and green transitions.”
Earlier this month NXP announced a $625 million acquisition of Austria’s TTTech Auto.
($1 = 0.9710 euros)
(Reporting by Toby Sterling; Editing by Tomasz Janowski)
