The European Investment Bank (EIB) has granted a €1 billion loan to Dutch chip manufacturer NXP to support research, development, and innovation projects across five European countries. The funding is part of the EU’s broader strategy to bolster semiconductor production and enhance Europe’s role in critical technologies.
The loan, announced in a joint statement by the EIB and NXP, will focus on activities in Germany, France, the Netherlands, Austria, and Romania. The initiative will be supported until 2026, with the loan carrying a six-year term.
The EIB, the EU’s long-term financing institution based in Luxembourg, is tasked with achieving the bloc’s strategic goals, including advancing chip manufacturing, artificial intelligence, and quantum computing. The loan to NXP underlines the EU’s commitment to reducing its dependence on Asia, which accounted for around 80% of global semiconductor production as of early 2024.
“Semiconductors are the key to the digital and green transition,” said EIB Vice President Robert de Groot. “It is vital for Europe to remain an indispensable player in the value chain of critical technologies.”
In April 2023, the EU approved the European Chips Act to expand semiconductor production and enhance competitiveness. The legislation aims to increase Europe’s share of global semiconductor production to reduce reliance on Asian manufacturers like Taiwan’s TSMC, the world leader in advanced chip production.
As one of the world’s largest suppliers of semiconductors for the automotive industry, NXP plans to use the EIB loan to improve energy efficiency in its products. “This loan highlights our commitment to sustainability and Europe’s technological leadership in the semiconductor market,” NXP stated in its press release.
The funding reinforces Europe’s ambitions to position itself as a leader in the global semiconductor market, ensuring supply chain resilience and supporting the green and digital transitions. With this initiative, NXP joins a growing list of companies receiving EU-backed funding to strengthen the region’s technological capabilities.
