STMicroelectronics, NXP bring together key wireless operations 
ConvergenceAsia staff
29/07/2008

NXP, the independent semiconductor company founded by Philips and STMicroelectronics, an advanced silicon solutions provider for mobile products, have announced the closing of the deal bringing together key wireless operations of both companies into ST-NXP Wireless, a deal they announced earlier on April 10.

The joint venture, which will start operations on August 2, launches as a solid top-three industry player with a complete wireless product and technology portfolio and as a leading supplier to major handset manufacturers who together ship more than 80 per cent of all handsets. ST-NXP Wireless will be among the few companies with the R&D scale and expertise to meet customer needs in 2G, 2.5G, 3G, multimedia, connectivity and all future wireless technologies.

STMicroelectronics took an 80 per cent stake in the joint venture and contributed $1.55 billion to NXP, including a control premium. The new organisation will start with a cash balance of about $350 million.

The wireless industry is undergoing a major change. Semiconductor companies are coming to play an ever more important role, contributing an ever larger share of the product value chain to handset makers, who expect us to deliver leading-edge solutions across the full spectrum of mobile applications, said Alain Dutheil, Chief Executive Officer of ST-NXP Wireless.

“ST-NXP Wireless is being created to address this new paradigm; we’ll be equipped with a world-class product and technology portfolio and top-league R&D capabilities to compete for leadership in the wireless and mobile-multimedia market.”

ST-NXP Wireless will combine key design, sales and marketing, and back-end manufacturing assets from both parent companies into a streamlined organisation. To be incorporated in Switzerland and headquartered in Geneva, ST-NXP Wireless will have in excess of 7,500 employees with major facilities in Belgium, China, Finland, France, Germany, India, Italy, Malaysia, Morocco, the Netherlands, Philippines, Singapore, Sweden, Switzerland, UK and the USA.

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