Saturday, August 30, 2014
Submit your own News for
inclusion in our Site.
Click here...
Breaking News
Intel Hopes To Improve Its Mobile Business With Ex-Qualcomm exec
Kingston HyperX Demos DDR4 Memory at PAX Prime
Corsair and ASUS Fastest DDR4 Memory Kit
Intel Unleashes its First 8-Core Desktop Processor For Gaming
Samsung Partners with Nike On Running App
Samsung Applied for Samsung Quantum Dot TV Trademark
New iPhones Expected at Sept. 9 Event
Google Tests Drones For Delivery Of Goods
Active Discussions
help questions structure DVDR
Made video, won't play back easily
Questions durability monitor LCD
Questions fungus CD/DVD Media, Some expert engineer in optical media can help me?
CD, DVD and Blu-ray burning for Android in development
IBM supercharges Power servers with graphics chips
Werner Vogels: four cloud computing trends for 2014
Video editing software.
 Home > News > General Computing > New Nam...
Last 7 Days News : SU MO TU WE TH FR SA All News

Friday, September 01, 2006
New Name and Strategy for Chip Division at Philips

The semiconductor unit of Philips Electronics is adopting a new name, NXP, as it becomes a stand-alone company and pursues a strategy that relies heavily on supplying chips to the fast-growing consumer market for advanced electronics products.

NXP, being adopted today, stands for Next Experience, the company said. The new name is meant to suggest that the company will focus largely on chips to improve the performance of the next generation devices used by consumers, including digital televisions, multimedia cellphones, electronic passports and digital cash and identification systems.

Last month, Philips Electronics agreed to sell 80 percent of its semiconductor division to a group of private equity firms ? Kohlberg Kravis Roberts & Company, Silver Lake Partners and AlpInvest Partners ? for 3.4 billion euros ($4.35 billion). Two weeks ago, two other private equity firms, Bain Capital and Apax, joined the buyers? group.

As part of the deal, expected to close in the fourth quarter, the investors will take on 4 billion euros ($5.12 billion) of the new company?s debt. The company will be based in Eindhoven, the Netherlands.

The new name and the strategy, analysts say, bear the clear imprint of the chief executive of the new company, Frans van Houten. He spent eight years as a senior executive in the consumer electronics division of Philips before assuming control of the semiconductor business in 2004.

Mr. van Houten?s experience in consumer electronics, analysts say, shaped his view that the best future for Philips?s semiconductor unit would be to make chips for what he refers to as ?connected consumer devices?: products for entertainment, communication and commerce that typically can handle images and sound, and can share information with other devices.

The market for consumer device chips is growing faster than that of chips for the personal computer industry, which is maturing.

Mr. van Houten, 46, was often mentioned as the most likely successor to Gerard Kleisterlee, 59, the chief executive of Philips Electronics.

The Philips semiconductor business, analysts say, has been somewhat hamstrung inside the larger company. It was often trying to sell its chips to companies that compete with the consumer electronics business of the parent company, like Sony, Toshiba and Matsushita, which markets Panasonic products. These companies are understandably reluctant to forge close partnerships with a supplier that is an arm of a corporate rival.

As a separate company, NXP will no longer have to overcome that hurdle. Removing that barrier could lift sales by 25 percent or so over the next few years, estimates Richard Doherty, director of Envisioneering, a technology research firm.

With sales last year of 4.62 billion euros ($5.9 billion), the Philips semiconductor business was among the world?s top 10 chip makers. In the last two years, under Mr. van Houten, the business grew by 19 percent and moved from a loss to profitability, with a pretax profit of 307 million euros ($393 million) last year.

The semiconductor business requires sizable capital investments and in the past it has swung in unpredictable cycles. Mr. van Houten said he was intent on making the business less volatile, delivering steady growth and pretax profit margins in the range of 5 to 15 percent.

But the parent company decided it wanted to get out of the semiconductor business to focus on what it regards as its two core strengths: health care products, like medical imaging machines and defibrillators, and what it calls the lifestyle market, with offerings that range from electric shavers to flat-screen televisions.

Mr. Kleisterlee has said Philips plans to drop ?Electronics? from its corporate name.

In using XP as corporate shorthand for ?experience,? NXP is following the lead of another technology company, Microsoft. The version of its operating system introduced in 2001 is called Windows XP.

Sony Announces First BD-R DL Discs        All News        Nero's Major Update to Nero 7
Windows Vista RC1 Is Complete!     General Computing News      Windows Media Player 11 in Second Beta

Source Link Get RSS feed Easy Print E-Mail this Message

Related News
Philips to Create New Lumileds and Automotive Lighting Businesses Company
Philips and To Deliver Cloud-based Healthcare Information Technology
EU To Fine Philips, Infineon And Samsung
Philips to Sell WOOX Innovations to Gibson
Philips Announces Its 2014 TV Lineup
MWC: Philips and Ericsson Unite On Smart Street Lighting
Philips Lighting System Guides You Through The Supermarket
Philips to transfer Remaining Stake in TV Joint Venture to TPV
Philips At CES 2014
Philips Celebrates 100 Years of Research
EU Raids Samung, Philips In Antitrust Probe
Funai Sues Philips For Breach of Contract

Most Popular News
Home | News | All News | Reviews | Articles | Guides | Download | Expert Area | Forum | Site Info
Site best viewed at 1024x768+ - CDRINFO.COM 1998-2014 - All rights reserved -
Privacy policy - Contact Us .