NXP, Freescale to emphasize security, IoT, and automotive applications
NXP Semiconductors N.V. and Freescale Semiconductor Ltd. today announced the completion of their merger pursuant to the terms of the previously announced merger agreement from March 2015.
In a press and analyst conference call, Steve Owen, executive vice president, sales and marketing; Ruediger Stroh, executive vice president and general manager for security and connectivity; and Kurt Sievers, executive vice president and general manager of the automotive business, outlined the focus of the combined companies, which will highlight security, IoT, and automotive applications as well as RF power and standard products.
The new NXP employs 11,000 engineers and has a presence in 35 countries, Owen said, adding that NXP and Freescale offer complementary portfolios that can combine to address security and connectivity.
Stroh emphasized that the IoT promises to revolutionize life by connecting people in new and novel ways, but consumers are concerned about privacy. NXP combined with Freescale can pursue opportunities to safeguard devices, he said, from edge to gateway to cloud.
Sievers addressed automotive applications, citing three aspects:
- sense, via radar vision and secure V2X communications;
- think, via processing and sensor fusion; and
- act, via powertrain and braking actuators.
Secure, connected, self-driving cars, he said, have the potential to prevent more than 1.3 million road fatalities globally per year. The car industry, he said, will change more over the next five to ten years than over the past 50 years, with cars becoming more connected, safer, and more energy efficient.
NXP said the merger has created a high performance mixed signal semiconductor industry leader, with combined revenue of over $10 billion. The merged entity will continue operations as NXP Semiconductors N.V. (NASDAQ:NXPI).
“Through this merger we have created an industry powerhouse focused on the high growth opportunities in the Smarter World, capitalizing on the emerging opportunities offered by the accelerating demand for connectivity, processing and security. Today’s formation of the new NXP is a transformative step on our journey to become the industry leader in high performance mixed signal solutions,” said Rick Clemmer, NXP chief executive officer, in a press release. “This merger enables us to deliver more complete solutions to our customers as we are emerging as the leader in the secure connections—and the supporting infrastructure—for the smarter-world domain. As a result, we reiterate today that we fully expect to continue to significantly out-grow the overall market, drive world-class profitability, and generate even more cash, allowing us to continue creating significant value for NXP’s shareholders.”
