“Market Cap $15.09 B As of May 2014
- Industry: Semiconductors
- Country: Netherlands
- CEO: Richard Clemmer
- Website: www.nxp.com
- Employees: 25,691
- Sales: $4.82 B
- Headquarters: Eindhoven
- #1749 in Sales
- #1565 in Profit
- #743 in Market value
NXP Semiconductors NV designs, manufactures and supplies mixed-signal and standard product solutions. It operates through the following business segments: High-Performance Mixed-Signal, Standard Products and Manufacturing Operations. The High-Performance Mixed-Signal segment delivers high performance mixed signal solutions to customers to satisfy their system and sub-system needs across eight application areas: automotive, identification, mobile, consumer, computing, wireless infrastructure, lighting, and industrial. The Standard Products segment supplies a range of standard semiconductor components for many application markets as well as application-specific standard products predominantly used in application areas such as mobile handsets, computing, consumer, and automotive. The Manufacturing Operations segment supplies products to the high performance mixed signal and standard products segments. The company was founded on August 2, 2006 and is headquartered in Eindhoven, Netherlands.”
“NXP Semiconductors History
- Philips Research Laboratories was involved in semiconductor research since the late 1940s, and succeeded in developing its first point contact transistor in 1949. On June 25, 1953, the Philips Board of Management decided to start a semiconductor operation, with manufacturing and development taking place in Nijmegen, Netherlands. From the 1950s until 1990, most of Philips’ semiconductor activities were conducted in a product division called Electronic Materials and Components – Elcoma.
- Silicon Valley-based Signetics, the “first company in the world established expressly to make and sell integrated circuits” and inventor of the 555 timer IC, was acquired byPhilips in 1975. At the time, it was claimed that “with the Signetics acquisition, Philips was now number two in the league table of semiconductor manufacturers in the world.”]In 1987, Philips-Signetics, a unit of Philips, was ranked Europe’s largest semiconductor maker, with sales of $1.36 billion in 1986.
- Philips acquired VLSI Technology in June 1999. At the time, the acquisition made Philips the world’s sixth largest semiconductor company.
- In December 2005, Philips announced its intention to legally separate its semiconductor division, Philips Semiconductors, into an independent legal entity.
- In September 2006, Philips completed the sale of an 80.1% stake in Philips Semiconductors to a consortium of private equity investors consisting of Kohlberg Kravis Roberts(KKR), Bain Capital, Silver Lake Partners, Apax Partners, and AlpInvest Partners.
Name change and spin-off from Philips
- The new company name NXP was announced on August 31, 2006, and was officially launched during the Internationale Funkausstellung (IFA) consumer electronics show in Berlin. The newly independent NXP was ranked as one of the world’s top 10 semiconductor companies. At the time, CEO Frans van Houten emphasized the importance of NXP in enabling “vibrant media” technologies in mobile phones, digital TVs, portable music players and other consumer electronics devices.
- NXP’s first acquisition as an independent company was in 2007, when NXP announced that it would acquire Silicon Laboratories’ AeroFONE single-chip phone and power amplifier product lines to strengthen its Mobile and Personal business. Fourteen months later, NXP announced that it would transform its Mobile and Personal business unit into a joint venture with STMicroelectronics, which in 2009 became ST-Ericsson, a 50/50 joint venture of Ericsson Mobile Platforms and STMicroelectronics, after ST purchased NXP’s 20% stake.
- Similarly, in April 2008, NXP announced it would acquire the set-top box business of Conexant to complement its existing Home business unit. In October 2009, NXP announced that it would sell its Home business unit to Trident Microsystems.
- In September 2008, NXP announced that it would restructure its manufacturing, R&D and back office operations, resulting in 4,500 job cuts worldwide, for annual savings of $550 million.
Focus on high-performance mixed signal and standard products
- Current president and CEO Rick Clemmer took over from Frans van Houten on January 1, 2009. Clemmer has emphasized the importance of “high performance mixed signal” products as a key focus area for NXP. As of 2011, “standard products” including components such as small signal, power and integrated discretes accounted for 30 percent of NXP’s business.
- On July 26, 2010, NXP announced that it had acquired Jennic based in Sheffield, UK, which now operates as part of its Smart Home and Energy product line, offering wireless connectivity solutions based on ZigBee and JenNet-IP.
- On August 6, 2010, NXP announced its IPO at NASDAQ, with 34,000,000 shares, pricing each $14.
- In December 2010, NXP announced that it would sell its Sound Solutions business to Knowles Electronics, part of DoverCorporation, for $855 million in cash. The acquisition was completed as of July 5, 2011.
- In April 2012, NXP announced its intent to acquire electronic design consultancy Catena to work on automotive applications, to capitalize on growing demand for engine emissions reduction and car-to-infrastructure, car-to-car, and car-to-driver communication.
- In July 2012, NXP sold its high-speed data converter assets to Integrated Device Technology.
- In 2012, revenue for NXP’s Identification business unit was $986 million, up 41% from 2011, in part due to growing sales of NFC chips and secure elements.
- On January 4, 2013, NXP and Cisco announced their investment in Cohda Wireless, an Australian company focused on car-to-car and car-to-infrastructure communications.
- In January 2013, NXP announced 700-900 redundancies worldwide in an effort to cut costs related to “support services”.
- In May 2013, NXP announced that it acquired Code Red Technologies, a provider of embedded software development such as the LPCXpresso IDE and Red Suite.”
*Information from Forbes.com and Wikipedia.org
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