(Bloomberg) -- NXP Semiconductors NV is selling $2 billion of bonds to help finance the development of semiconductors that reduce energy consumption in products like power adapters and electric vehicles.

The chipmaker is issuing bonds in two parts, according to a person with knowledge of the matter, who asked not to be identified as the details are private. The longer portion of the deal, a 20-year security, will yield 1.15 percentage points above Treasuries, down from the initially targeted 1.5% premium, the person said. That equates to roughly 3.3%.

A portion of the net proceeds being raised by company subsidiaries NXP B.V., NXP Funding LLC and NXP USA Inc. will fund research and development for the innovation of green chips, battery control and energy management for electric and hybrid cars, smart-building technologies, as well as energy-efficiency measures at NXP’s own facilities, the company said in a statement Tuesday. NXP raised $1 billion in green debt in April 2020.

Semiconductors are critical components to many aspects of modern life, and used in everything from washing machines, cars and computing. While chips have become incredibly powerful and efficient, using less and less energy, producing them is increasingly elaborate work. Chipmakers broadly acknowledge there’s a giant carbon footprint issue in their fabrication.

NXP said it has cut absolute emissions of perfluorinated compounds (PFCs), which are greenhouse gases, by 66%. Intel Corp., the world’s largest chipmaker, said it was already among the top three users of renewable energy in the U.S. Meanwhile, a global chip shortage is going from bad to worse with automakers on three continents joining tech giants Apple Inc. and Samsung Electronics Co. in flagging production cuts and lost revenue from the crisis.

Considerable demand for the NXP offering could drive down spreads on the 10-year offering toward 100 basis points, “as double-digit revenue growth returns and credit quality stays on an improving trajectory,” Bloomberg Intelligence analysts Robert Schiffman and Suborna Panja wrote in a note Tuesday.

The Eindhoven, Netherlands-based company has approximately 29,000 employees in more than 30 countries and generated $8.61 billion in revenue last year.

Barclays Plc, Citigroup Inc. and Credit Suisse Group AG are managing the sale, the person said.

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