STMicroelectronics, NXP merge wireless businesses 
ConvergenceAsia staff
11/04/2008

NXP, the independent semiconductor company founded by Philips and STMicroelectronics, a provider of advanced solutions for mobile products, have announced their agreement to combine key wireless operations to form a joint-venture company with strong relationships with all major handset manufacturers.

The new organisation will combine key design, sales and marketing, and back-end manufacturing assets from both companies into a streamlined worldwide joint venture that will rely on its parent companies and foundries for wafer fabrication services.

“The strength of this venture is its excellent relationships with key customers, as well as the complementary IP and product portfolios transferred from ST and NXP that create a rich and broad offering with the capability to deliver leading-edge innovations to the market,” said Carlo Bozotti, President and CEO of STMicroelectronics.

The new organisation will be well positioned with all of the vital technologies for UMTS (Universal Mobile Telecommunication System); for the emerging 3G Chinese standard; as well as other cellular, multimedia and connectivity capabilities, including WiFi, Bluetooth, GPS, FM Radio, USB, and UWB (Ultra-wideband), to effectively serve its global customers with complete wireless and mobile solutions across the spectrum of applications.

The joint venture will also integrate the Silicon Laboratories’ wireless and GloNav’s GPS operations recently acquired by NXP.

In order to create a clear ownership structure, STMicroelectronics will take an 80 per cent stake in the joint venture. NXP will receive $1.55 billion from ST, including a control premium, to be funded from outstanding cash.

The new company will be incorporated in the Netherlands and headquartered in Switzerland with approximately 9,000 employees worldwide.

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