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Backed by grants from national governments, NXP has announced that it will be scaling up R&D activities in Germany, Austria, the Netherlands and Romania. The expansion includes the development of 5nm automotive processors, post-quantum cryptography and next-generation radar systems, establishing an AI competence center and setting up a lab for characterizing and testing 6G products.

NXP hasn’t yet decided on the extent of the investment, as this depends on the level of public funding. The incentives are provided in the context of the EU’s second Important Project of Common European Interest on Microelectronics and Communication Technologies (IPCEI ME/CT), which softens state-aid rules for investments in strategic value chains.
The R&D hike follows the announcement of the European Semiconductor Manufacturing Company, a joint venture with TSMC, Bosch and Infineon. The 300mm fab for production of 28/22nm planar CMOS and 16/12nm FinFET technology is expected to come online by the end of 2027.