STMicroelectronics and NXP Complete Deal to Create Semiconductor Firm

NXP -- the independent semiconductor company founded by Philips -- and STMicroelectronics have announced the closing of the deal bringing together key wireless operations of both companies into ST-NXP Wireless, a deal they announced on April 10th, 2008.

ST-NXP Wireless is being created from businesses that together generated $3 billion in revenue in 2007. At the closing, STMicroelectronics took an 80% stake in the joint venture and contributed $1.55 billion to NXP, including a control premium. The new organization 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."

Alain Dutheil, presently Chief Operating Officer of STMicroelectronics, has been assigned to lead ST-NXP Wireless as Chief Executive Officer, focusing exclusively on the new joint-venture.

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.

Posted to the site on 29th July 2008