Philips Semiconductors is to be re-branded for its future development as ''NXP'', marking a milestone in the company''s 53-year history as it becomes independent from Royal Philips.
     The name change 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% stake in the semiconductor operation with Philips retaining a 19.9% interest. 116.30.145.87 This article is copyright 2006 UsingRFID.com.

     Speaking at the Internationale Funkausstellung (IFA) consumer electronics show in Berlin, 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".

New name, same game
     Mr van Houten added that "NXP stands for ''Next Experience''. Put simply, we''re enabling the next generation of consumer entertainment products. In order to emphasize the rich heritage that NXP gained from 53 years as part of Royal Philips, the NXP name will be supported by the tagline founded by Philips."

     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.

Shareholder support
     The new shareholders support the continuation of the strategy of NXP, which is aiming for leadership in the five key markets on which the company focuses: Automotive, Identification, Home, Mobile and Personal, and Multimarket Semiconductors.

     This is expected to be achieved through the investment of €1 billion in R&D, the asset light manufacturing strategy, a strong customer focus, the talent base of its 37,000 employees, and its continued Business Renewal programme.

Financial structure
     Explaining the financial structure of the equity funding, Mr. van Houten confirmed NXP will have over €1.2 billion in cash and credit reserves. This financial buffer will also enable the company to explore options for acquisitions.

     Mr. Johannes Huth from KKR, the leading partner in the private equity consortium, added: "NXP is leading in markets with strong growth characteristics, such as Near Field Communication (NFC) and digital TV. The business renewal strategy is a strong foundation for future growth, and we look forward to supporting the existing management team as it continues to add value to this business."

Emerging technologies R&D centre
     A centre dedicated to emerging technologies has been established within NXP with close to 600 scientists joining from Philips Research and Applied Technologies. In total, NXP now has over 6,700 engineers in research & development. NXP will remain headquartered in Eindhoven, the Netherlands.

 

 

 

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