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| Philips Semiconductors Becomes NXP Philips Semiconductors CEO Frans van Houten has revealed the company will move forward as NXP, marking a milestone in its 53 year history as it becomes independent from Royal Philips. The name change announcement follows an agreement between Royal Philips and Kohlberg Kravis Roberts & Co. (KKR), Bain Capital, Silver Lake Partners, Apax and AlpInvest Partners NV that will see the consortium take an 80.1 percent stake in the semiconductor operation with Philips retaining a 19.9 percent interest. NXP is Europe's second largest semiconductor company and a global top 10 player. Speaking at the Internationale Funkausstellung (IFA) consumer electronics show in Berlin, Mr. van Houten explained that the company's 'vibrant media' brand promise reflects its leadership in media technologies that enable better sensory experiences for consumers such as superior image and sound quality in digital televisions, mobile phones and other entertainment products. Mr. van Houten confirmed that NXP will continue its current business renewal strategy, which has been underway for 18 months and has contributed to sustained profitability and cost savings, as a strong foundation for the future. The new shareholders support the continuation of the strategy of NXP, which is driving for leadership in five markets on which the company focuses: Automotive, Identification, Home, Mobile and Personal, and Multimarket Semiconductors. This will be achieved through investment of one billion Euro in R&D, the asset light manufacturing strategy, a strong customer focus, the enormous talent base among its 37.000 employees, and the continued Business Renewal Program. Explaining the financial structure of the equity funding, Mr. van Houten confirmed NXP will have over 1.2 billion Euro in cash and credit reserves. This financial buffer will also enable the company to explore options for acquisitions. A center dedicated to emerging technologies has been established within NXP with close to 600 scientists joining from Philips Research and Applied Technologies, ensuring continued innovation. In total, NXP now has over 6, 700 engineers in research & development. NXP will remain headquartered in Eindhoven, the Netherlands. write your comments about the article :: © 2006 Computing News :: home page |