NXP Semiconductors

NXP Semiconductors

Type	Public (NASDAQ: NXPI)
Industry	Electronics
Founded	2006, formerly a division of Philips
Headquarters	Eindhoven, Netherlands
Key people	Rick Clemmer, President & CEO
Products	Semiconductors
Revenue	US$ 4.5 Billion (2010)
Net income	US$ 462.5 Million (2010)
Employees	28,150
Website	www.nxp.com

NXP Semiconductors is one of the Worldwide Top 20 Semiconductor Sales Leaders, and was originally founded by Philips more than 50 years ago. Formerly known as Philips Semiconductors, the company was sold by Philips to a consortium of private equity investors in 2006. The new name, NXP, stood for the consumer's "next experience", according to then-CEO Frans van Houten.^[1] On August 6, 2010, NXP completed its IPO, with shares trading on NASDAQ under the ticker symbol NXPI.

NXP Semiconductors provides High Performance Mixed Signal and Standard Product solutions based on its RF, analog, power management, interface, security and digital processing expertise. More informally, NXP has characterized its strategy as focusing on "products with no big chip in the middle."^[2] These semiconductors are used in a wide range of "smart" automotive, identification, wireless infrastructure, lighting, industrial, mobile, consumer and computing applications. Headquartered in the Netherlands, the company has approximately 28,000 employees working in more than 25 countries and posted sales of USD 4.4 billion in 2010.^[3]

NXP is the co-inventor of NFC or Near Field Communication technology along with Sony, and supplies NFC chip sets which enable mobile phones to be used to pay for goods, and store and exchange data securely.^[4] NXP ranks No. 1 in chips for eGovernment applications such as electronic passports; No. 1 in transport and access management, with the chip set and contactless card for MIFARE used by many major public transit systems worldwide; and is No. 1 in RFID tags and labels.^[5]

In addition, NXP is the global market leader in many other areas, including automotive chips for in-vehicle networking, passive keyless entry and immobilization, and car radios,^[6] as well as silicon tuners for the TV and set-top-box market.^[7] As of February 2011, NXP had shipped over one billion ARM processor-based chips and is the only provider of microcontrollers with a roadmap based exclusively on 32-bit ARM architecture.^[8]

According to CEO Rick Clemmer, key growth areas for NXP include energy-efficient GreenChip technology for power and lighting, telematics, authentication technology, and solutions for the Smart Home or home automation market.^[9] NXP is also involved in sensors for various applications such as automotive,^[10] white goods and home appliances, industrial automation, and building automation.

History

Philips Semiconductors

• Signetics was acquired by Philips 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."^[11] In 1987, Philips-Signetics, a unit of Philips, was ranked Europe's largest semiconductor maker, with sales of $1.36 billion in 1986.^[12]

• Philips acquired VLSI Technology in June 1999. At the time, the acquisition made Philips the world's sixth largest semiconductor company.^[13]

• In December 2005, Philips announced its intention to legally separate its semiconductor division, Philips Semiconductors, into an independent legal entity.^[14]

• 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 & Co. (KKR), Bain Capital, Silver Lake Partners, Apax Partners, and AlpInvest Partners.^[15]

Spin-off of NXP Semiconductors

• The new company name NXP was announced on August 31, 2006,^[16] 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.^[17] 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.^[18]

• 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.^[19] 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.^[20]

• Similarly, in April 2008, NXP annnounced it would acquire the set-top box business of Conexant to complement its existing Home business unit.^[21] In October 2009, NXP announced that it would sell its Home business unit to Trident Microsystems.^[22]

• 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.^[23]

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.^[24] Clemmer has emphasized the importance of "high performance mixed signal" products as a key focus area for NXP.^[25] As of 2011, "standard products" including components such as small signal, power and integrated discretes^[26] accounted for 30 percent of NXP's business.^[27]

• On July 26, 2010, NXP announced that it had acquired Jennic,^[28] which now operates as its Low Power RF business, offering wireless connectivity solutions such as JenNet-IP.

• On August 6, 2010, NXP announced its IPO at NASDAQ, with 34,000,000 shares, pricing each $14.^[29]

• In December 2010, NXP announced that it would sell its Sound Solutions business to Knowles Electronics, part of Dover Corporation, for $855 million in cash.^[30] The acquisition was completed as of July 5, 2011.^[31]

• In 2010, NXP posted revenues of $589 million worldwide across its Identification business unit, including secure transactions, secure identity, and tagging and authentication product lines.^[32]

Main markets

NXP offers High Performance Mixed Signal and Standard Product solutions for a wide range of applications, including:

• Automotive
• Identification
• Wireless Infrastructure
• Lighting
• Industrial
• Mobile
• Consumer
• Computing^[33]

Worldwide sites

NXP Headquarters in Eindhoven, The Netherlands, July 2011

NXP ARM processor

• Europe
  • Eindhoven, Netherlands
  • Nijmegen, Netherlands
  • Dresden, Germany
  • Hamburg, Germany
  • Munich, Germany
  • Stuttgart, Germany
  • Caen, France
  • Belfast, UK
  • Manchester, UK (formerly known as Hazel Grove campus)
  • Sheffield, UK (acquired Jennic Limited in 2010)
  • Southampton, UK
  • Vienna, Austria
  • Gratkorn, Austria
  • Leuven, Belgium
  • Zurich, Switzerland
  • Budapest, Hungary

• Asia
  • Bangalore, India
  • Hyderabad, India
  • Cabuyao, Laguna, Philippines
  • Tokyo, Japan
  • Osaka, Japan
  • Seoul, Korea
  • Kaohsiung, Taiwan
  • Hongkong, China
  • Dongguan, China
  • Shanghai, China
  • Shenzhen, China
  • Seremban, Malaysia
  • Batam, Indonesia
  • Singapore
  • Bangkok, Thailand
  • Haifa, Israel

• Americas
  • Austin, TX, USA
  • Boston, MA, USA
  • San Diego, CA, USA
  • San Jose, CA, USA
  • Schaumburg, IL, USA
  • Tempe, AZ, USA

See also

• Worldwide Top 20 Semiconductor Market Share Ranking Year by Year
• MIFARE

References

1. ^ "Philips Semiconductors to become NXP", EE Times, August 31, 2006. Retrieved May 27, 2011.
2. ^ "NXP: No-big-chip-in-the-middle strategy", EE Times, May 11, 2011. Retrieved November 9, 2011.
3. ^ "http://www.nxp.com/profile/". Retrieved June 24, 2011.
4. ^ "NXP says demand for NFC chips to soar", Reuters, May 19, 2011. Retrieved May 28, 2011.
5. ^ "NXP Consolidates No. 1 Position in Worldwide ID Market", ECN Europe, August 4, 2011. Retrieved November 12, 2011.
6. ^ "http://www.nxp.com/profile/". Retrieved November 9, 2011.
7. ^ "Silicon Vendors Battle For $500 Million TV Tuner Market" In-Stat, July 20, 2010. Retrieved November 8, 2011.
8. ^ "NXP, ARM sign long term Cortex-M processor deal", New Electronics, February 28, 2011. Retrieved November 12, 2011.
9. ^ "NXP CEO Says Google Wallet to Double Its Near-Field Chip Sales", Dow Jones Newswires, June 9, 2011. Retrieved June 24, 2011.
10. ^ "NXP Semiconductors Announce Release of Position Sensors Based on ABCD9 Technology." July 29, 2011. Retrieved August 2, 2011.
11. ^ "Philips Is World No.2 In Semiconductors" ElectronicsWeekly.com, April 28, 2009. Retrieved May 27, 2011.
12. ^ "INTERNATIONAL REPORT; CHIP BATTLE GROWS IN EUROPE", New York Times, May 11, 1987. Retrieved May 27, 2011.
13. ^ "COMPANY NEWS; PHILIPS IN $1 BILLION DEAL FOR VLSI TECHNOLOGY", New York Times, May 4, 1999. Retrieved May 27, 2011.
14. ^ "Philips targets end '06 for chips unit IPO or merger", EE Times, June 21, 2006. Retrieved May 27, 2011,
15. ^ "KKR, Bain Sell NXP in Initial Offering at 46% Discount to LBO", Bloomberg, August 6, 2010. Retrieved May 27, 2011.
16. ^ "Philips Semiconductors to become NXP", EE Times, August 31, 2006. Retrieved May 27, 2011.
17. ^ "What Are KKR's Plans for Philips Semi?", BusinessWeek, August 2, 2006. Retrieved May 27, 2011.
18. ^ "NXP Hits The Ground Running", Forbes.com, September 1, 2006. Retrieved May 27, 2011.
19. ^ "NXP pays $285 million for Silicon Labs' cellular unit", EE Times, February 8, 2007. Retrieved May 28, 2011.
20. ^ "ST-NXP Wireless changes name to ST-Ericsson, 85% of employees in R&D", EDN, February 12, 2009. Retrieved May 28, 2011.
21. ^ "NXP to acquire Conexant's set-top box business", EE Times, April 28, 2008. Retrieved May 29, 2011.
22. ^ "NXP sells digital TV chip business, takes stake in Trident", Electronics Weekly, October 5, 2009. Retrieved May 29, 2011.
23. ^ "UPDATE 2-NXP restructures: affects 4,500 jobs, costs $800 mln", Reuters, September 12, 2008. Retrieved May 29, 2011.
24. ^ "Van Houten leaves NXP as former TI, Agere exec takes over", EE Times, December 31, 2008. Retrieved May 29, 2011.
25. ^ "Rick Clemmer, Executive Director, President and Chief Executive Officer, NXP", New Electronics, February 8, 2011. Retrieved May 29, 2011.
26. ^ "NXP CEO Says Google Wallet to Double Its Near-Field Chip Sales", Dow Jones Newswires, June 9, 2011. Retrieved June 24, 2011.
27. ^ "Rick Clemmer, Executive Director, President and Chief Executive Officer, NXP", New Electronics, February 8, 2011. Retrieved May 29, 2011.
28. ^ "NXP buys Jennic, boosts short-range RF portfolio", EE Times, July 26, 2010. Retrieved July 2, 2011.
29. ^ "NXP Announces Pricing of Its Initial Public Offering". http://www.nxp.com/news/content/file_1743.html. 
30. ^ "NXP to sell off Sound Solutions business", Electronics Weekly, December 22, 2010. Retrieved May 31, 2011.
31. ^ "Dover Corporation Completes Acquisition of Sound Solutions from NXP Semiconductors N.V.", Reuters, July 5, 2011. Retrieved July 5, 2011.
32. ^ "NXP shows RFID is coming of age", RFID Journal, August 1, 2011. Retrieved November 9, 2011.
33. ^ "http://www.nxp.com/profile/" Retrieved July 2, 2011.

External links

• NXP Semiconductors – company website
• NXP's no-big-chip-in-the-middle strategy – EE Times article about NXP's high-performance mixed signal strategy
• FAQ around the MIFARE issue on NXP website