Philips Semiconductors is no longer. Say hello to NXP. The name change follows an agreement between Royal Philips and Kohlberg Kravis Roberts & Co, Bain Capital, Silver Lake Partners, Apax and AlpInvest Partners NV that will see the consortium take an 80.1% stake in the semiconductor operation with Philips retaining a 19.9% interest.
Speaking at the Internationale Funkausstellung (IFA) consumer electronics show in Berlin, Philips Semiconductors CEO Frans 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.
Van Houten confirmed NXP will continue its current business renewal strategy, and that the new shareholders support the continuation of this plan. NXP will focus on five markets: automotive, identification, home, mobile, and personal and multimarket semiconductors. NXP notes that it has investment support of one billion Euro in research and development, an asset light manufacturing strategy, a strong customer focus, and the experience and expertise of its 37,000 employees.
A centre dedicated to emerging technologies has been established within NXP, with about 600 scientists joining from Philips Research and Applied Technologies. Currently, NXP's R&D staff now totals over 6700. The company will remain headquartered in Eindhoven, the Netherlands.
Derek Lidow, CEO of iSuppli, says, "This largest technology leveraged buyout ever will create a real semiconductor powerhouse. Armed with its independence, and starting out as Europe's second largest semiconductor company, the management team has clearly just started rewriting the history books."