Philips Semiconductors CEO Frans van Houten says the company will move forward as NXP, marking a milestone in its 53 year history as it becomes independent from Royal Philips. The name change announcement follows an agreement between Royal Philips and Kohlberg Kravis Roberts & Co. (KKR), Bain Capital, Silver Lake Partners, Apax and AlpInvest Partners NV that will see the consortium take an 80.1% stake in the semiconductor operation with Philips retaining a 19.9% interest. NXP is Europe's second largest semiconductor company and a global top 10 player. The new shareholders support the continuation of the strategy of NXP, which is driving for leadership in five markets on which the company focuses: Automotive, Identification, Home, Mobile and Personal, and Multimarket Semiconductors. This will be achieved through investment of one billion Euro in R&D, the asset light manufacturing strategy, a strong customer focus, the enormous talent base among its 37,000 employees, and the continued Business Renewal Program. A centre dedicated to emerging technologies has been established within NXP with close to 600 scientists joining from Philips Research and Applied Technologies, ensuring continued innovation. In total, NXP now has over 6,700 engineers in research & development. NXP will remain headquartered in Eindhoven, the Netherlands.
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