Philips renames semiconductor business

By ST Team   |   Monday, 04 September 2006, 19:30 IST
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BANGALORE: Close on the heels of revealing its new independent identity globally, Philips Semiconductors today unveiled the India chapter and formally introduced the new company – NXP Semiconductors India. The name change and new identity follow an agreement made in August 2006 between Royal Philips and Kohlberg Kravis Roberts & Co. (KKR), Bain Capital, Silver Lake Partners, Apax Partners and AlpInvest Partners NV that will see them take an 80.1 percent stake in the semiconductor business, valued at € 8.3 billion. Philips will retain the remaining 19.9 percent of the semiconductor business. The NXP acronym stands for “Next Experience”. Simply put, NXP enables the next generation of consumer products that create advanced and exciting sensory experiences for the customer and end user. The name NXP communicates the brand promise of “Vibrant Media”. As a recapitalized, independent entity, NXP is well positioned to offer vibrant media technologies to consumers and end-users alike. Supported by the tagline “Founded by Philips”, the new name backed by the Philips heritage will stand as a bridge from the past into the future. Speaking on the formation of NXP, K Ramachandran, CEO, Philips Electronics India Limited remarked, “This is a momentous occasion for Philips and its semiconductor business. We are delighted to have allied with progressive partners who share our vision for the semiconductor business. Going forward as their business partners, we remain firmly committed to NXP as it readies itself for the next stage of its history.” Headquartered in Bangalore, NXP in India is among the top 5 MNC employers in the semiconductor space. NXP India also has operations in Delhi and Mumbai. With a total workforce of 700 R&D engineers and a sales network which covers the entire country, NXP India has established itself as a major force in the Indian Semiconductor space and as an R&D service organization within NXP globally. The core areas of the company’s activities in India will include Design, Sales and Software Partnerships. Outlining the company’s ongoing India strategy, MRajeev Mehtani, Managing Director, NXP Semiconductors, India said, “We are thrilled to be part of this new vibrant brand. We will continue to build stronger traction for our Home, Mobile & Personal and Automotive & Identification Business Units, which we see as being key drivers for our growth. In the coming months NXP will invest € 5 million in a new state-of-the-art campus in Bangalore.” “We are committed to investing a further € 250 million over the next 5 years towards our sales and R&D organization here. In our R&D organization, we have continuously added more than 100 engineers to our payroll each year for the last 3 years,” he continued. The company is presently working on leading edge technologies, in 90 nm and 65 nm processes, in the areas of chip design and embedded software and systems. The design center’s world-class status was recently reinforced when it was awarded the Certificate of Excellence in Semiconductor Exports from STPI (Software Technology Parks of India) – a Government of India initiative. “NXP Semiconductors is amongst the top 3 semiconductor companies in India in terms of sales with market leadership in several areas including chipsets for color TVs, contact-less smart card ICs and multimarket semiconductor devices. NXP India is working towards truly connected living by offering semiconductor devices and system solutions that add value to Indian OEM’s and Design companies,” said Mr. Ashok Chandak, Sales and Marketing Director, NXP Semiconductors, India. NXP India customers include top 5 consumer electronics companies, industrial product manufacturers, major developers of automotive electronics, mobile phone manufacturers, Smart Card manufacturers, EMS companies, system integrators and design houses and distribution channel partners. NXP Semiconductors India has dedicated software relations program aimed at its Nexperia Home and Mobile platforms. The company has established partnerships with numerous companies with a view to achieve its goal of being the best in its chosen markets as well as access cutting edge technical competencies. It has aggressive plans to sign up new partners to offer better flexibility and faster time to market for its customers. With the financial structure of the equity funding, NXP globally will have over € 1.2 billion in cash and credit reserves. This financial buffer will also enable the company to explore options for acquisitions. There is also an investment outlay of € 1 billion in R&D, the company’s continued asset light manufacturing strategy, a strengthened customer focus, the enormous talent base of its approximately 37,000 employees, and the continued Business Renewal Program.