NXP Semiconductors
NXP Semiconductors N.V. (NXP) is a Dutch semiconductor designer and manufacturer with headquarters in Eindhoven, Netherlands.[2] The company employs approximately 31,000 people in more than 30 countries. NXP reported revenue of $11.06 billion in 2021.[3]
"NXP" redirects here. For the airfield, see Twentynine Palms Strategic Expeditionary Landing Field.Company type
- Nasdaq: NXPI
- Nasdaq-100 component
- S&P 500 component
High Tech Campus, Eindhoven, Netherlands
- Peter Bonfield (Chairman)
- Kurt Sievers (President & CEO)
US$13.3 billion (2023)
US$3.66 billion (2023)
US$2.82 billion (2023)
US$24.4 billion (2023)
US$8.64 billion (2023)
c. 34,200 (2023)
Originally spun off from Philips in 2006, NXP completed its initial public offering, on August 6, 2010, with shares trading on Nasdaq under the ticker symbol NXPI. On December 23, 2013, NXP Semiconductors was added to the Nasdaq-100 index.[4] On March 2, 2015, it was announced that NXP would merge with Freescale Semiconductor.[5] The merger was closed on December 7, 2015.[6] On October 27, 2016, it was announced that Qualcomm would try to buy NXP.[7] However, Qualcomm cancelled the deal due in part to trade issues in China. The merger was effectively cancelled on July 26, 2018.[8]
History[edit]
Within Philips[edit]
In 1953 Philips started a small scale production facility in the center of the Dutch city Nijmegen as part of its main industry group "Icoma" (Industrial Components and Materials), followed by the opening of a new factory in 1955. In 1965 Icoma became part of a new Philips main industry group: "Elcoma" (Electronic Components and Materials).[13] In 1975 Silicon Valley–based Signetics was acquired by Philips. Signetics claimed to be the "first company in the world established expressly to make and sell integrated circuits"[14] and inventor of the 555 timer IC. At the time, it was claimed that with the Signetics acquisition, Philips was now number two in the league table of semiconductor manufacturers in the world.[15] In 1987, Philips was ranked Europe's largest semiconductor maker.[16] The year after, all Philips semiconductor subsidiaries, including Signetics, Faselec (in Switzerland) and Mullard (in the UK), were merged in the newly formed product division Components. The semiconductor activities were split off from Components in 1991 under the name Philips Semiconductors.[13] In June 1999, Philips acquired VLSI Technology, at the time making Philips the world's sixth largest semiconductor company.[17]
Independent company[edit]
In December 2005, Philips announced its intention to divest Philips Semiconductors into an independent legal entity.[18] In September 2006, Philips completed the sale of an 80.1% stake in Philips Semiconductors to a consortium of private equity investors consisting of KKR, Bain Capital, Silver Lake Partners, Apax Partners and AlpInvest Partners.[19][20] The new company name NXP (from Next eXPerience) was announced on August 31, 2006,[21] and the company was officially launched during the Internationale Funkausstellung (IFA) consumer electronics show in Berlin. The newly independent NXP was ranked as one of the world's top 10 semiconductor companies.[22]
In February 2007, when NXP announced that it would acquire Silicon Laboratories’ AeroFONE single-chip phone and power amplifier product lines to strengthen its Mobile and Personal business.[23] The next year, NXP announced that it would transform its Mobile and Personal business unit into a joint venture with STMicroelectronics, which in 2009 became ST-Ericsson, a 50/50 joint venture of Ericsson Mobile Platforms and STMicroelectronics, after ST purchased NXP's 20% stake.[24] In April 2008, NXP announced it would acquire the set-top box business of Conexant to complement its existing Home business unit.[25][26] In September 2008, NXP announced that it would restructure its manufacturing, R&D and back office operations, resulting in 4,500 job cuts worldwide.[27] In October 2009, NXP announced that it would sell its Home business unit to Trident Microsystems.[28]
Before the divestiture of Nexperia in June 2016,[29] NXP was a volume supplier of discrete and standard logic devices, celebrating its 50 years in logic (via its history as both Signetics and Philips Semiconductors) in March 2012.[30]
NXP's first CEO was Frans van Houten; he was succeeded by Richard L. Clemmer on January 1, 2009.[31] Since May 2020, Kurt Sievers serves as president and CEO.[32][33]
Freescale acquisition[edit]
In March 2015, a merger agreement was announced through which NXP would merge with competitor Freescale Semiconductor.[34] In view of this merger, NXP's RF Power activities were sold to JAC Capital for US$1.8 billion and rebranded as Ampleon, in a transaction closed in November 2015.[35] Both NXP and Freescale had deep roots stretching back to when they were part of Philips (NXP), and Motorola (Freescale) respectively.[36] Both had similar revenue; US$4.8 billion and US$4.2 billion in 2013 for NXP and Freescale, respectively with NXP primarily focusing on near field communication (NFC) and high-performance mixed signal (HPMS) hardware, and Freescale focusing on its microprocessor and microcontroller businesses, and both companies possessing roughly equal patent portfolios.[37] On December 7, 2015, NXP completed the merger with Freescale Semiconductor; the merged company continued its operation as NXP Semiconductors N.V.[38]
Controversies[edit]
In March 2013, NXP locked out workers at its plant in Bangkok, Thailand. The reason was stalled negotiations over a new work schedule with their trade union, which was affiliated with the Confederation of Thai Electrical Appliances, Electronic Automobile & Metalworkers (TEAM). Management then called in small groups of workers, asked them if they agreed with the union's demands, and told them to leave if they did. They were not able to enter the factory the next day. In response, TEAM staged protests outside the factory and on March 13 outside the Dutch embassy and also filed a complaint with the National Human Right Commission. On April 29, mediation by the Ministry of Labour led to the signing of a memorandum that passed the decision over the work schedule to the Labour Relations Committee. The committee decided on June 20 that the new work schedule did not violate Thai labour law; however, the National Human Rights Committee decided otherwise and recommended the factory should revert to the old schedule. NXP continues to demand regular 12-hour shifts.[63]
In May 2014, the company fired 24 workers at its plant in the special economic zone in Cabuyao, The Philippines. The workers were all officials of a trade union affiliated with the Metal Workers Alliance of the Philippines (MWAP). Reports said they were fired due to their union functions in negotiations for a new collective bargaining agreement. Factory owners claimed the workers were fired after refusing to work on April 9, while workers said they had not been paid for two months.[64] IndustriALL and its affiliated unions in the Philippines condemned the dismissals.[65][66] In September, MWAP and NXP reached an agreement by which 12 of the fired workers were reinstated and the other 12 received separation packages. NXP also committed itself to a long-term wage increase.[67] In the summer of 2015, a member of the Dutch parliament questioned trade minister Lilianne Ploumen regarding NXP's behaviour.[68]
