NXP Semiconductors explained

NXP Semiconductors N.V.
Type:Public
Foundation:, as a Philips spin-off
Location:High Tech Campus, Eindhoven, Netherlands
Products:Integrated circuits
Industry:Semiconductors
Num Employees: (2023)
Footnotes:[1]

NXP Semiconductors N.V. (NXP) is a Dutch semiconductor manufacturing and design company with headquarters in Eindhoven, Netherlands.[2] It is the third largest European semiconductor company by market capitalization as of 2024 [3] . The company employs approximately 34,000 people in more than 30 countries and it reported revenues of $13.3 billion in 2023.[4]

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.[5] In 2021 it was added to the American stock index S&P 500 https://www.nxp.com/company/about-nxp/nxp-semiconductors-to-join-sp-500-index:NW-NXP-JOIN-SP-INDEX-500

On March 2, 2015, it was announced that NXP would merge with Freescale Semiconductor in a transaction which would value the combined enterprise at just over $40 billion.[6] The merger was closed on December 7, 2015.[7]

On October 27, 2016, it was announced that Qualcomm would try to buy NXP for $44 billion, which at that time would have been the biggest semiconductor takeover globally.[8] However, Qualcomm cancelled the deal due in part to trade issues in China. The merger was effectively cancelled on July 26, 2018.[9]

Description

NXP provides technology solutions targeting the automotive, industrial, IoT, mobile, and communication infrastructure markets. The company owns over 9,500 patent families.

NXP is the co-inventor of near field communication (NFC) technology along with Sony and Inside Secure and supplies NFC chip sets that enable mobile phones to be used to pay for goods, and store and exchange data securely.[10] NXP manufactures chips for eGovernment applications such as electronic passports; RFID tags and labels; and transport and access management, with the chip set and contactless card for MIFARE used by many major public transit systems worldwide.[11] In order to protect against potential hackers, NXP offers gateways to automotive manufacturers that prevent communication with every network within a car independently.[12]

Worldwide sites

NXP Semiconductors is headquartered in Eindhoven, Netherlands. The company has operations in more than 30 countries.[13]

Wafer fabs

Test and assembly

Joint ventures

History

Within Philips

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).[14] 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"[15] 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.[16] In 1987, Philips was ranked Europe's largest semiconductor maker.[17] 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. In June 1999, Philips acquired VLSI Technology, at the time making Philips the world's sixth largest semiconductor company.[18]

Independent company

In December 2005, Philips announced its intention to divest Philips Semiconductors into an independent legal entity.[19] 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.[20] [21] The new company name NXP (from Next eXPerience) was announced on August 31, 2006,[22] 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.[23]

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.[24] 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.[25] In April 2008, NXP announced it would acquire the set-top box business of Conexant to complement its existing Home business unit.[26] [27] In September 2008, NXP announced that it would restructure its manufacturing, R&D and back office operations, resulting in 4,500 job cuts worldwide.[28] In October 2009, NXP announced that it would sell its Home business unit to Trident Microsystems.[29]

Before the divestiture of Nexperia in June 2016,[30] 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.[31]

NXP's first CEO was Frans van Houten; he was succeeded by Richard L. Clemmer on January 1, 2009.[32] Since May 2020, Kurt Sievers serves as president and CEO.[33] [34]

Freescale acquisition

In March 2015, a merger agreement was announced through which NXP would merge with competitor Freescale Semiconductor.[35] 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.[36] Both NXP and Freescale had deep roots stretching back to when they were part of Philips (NXP), and Motorola (Freescale) respectively.[37] 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.[38] On December 7, 2015, NXP completed the merger with Freescale Semiconductor; the merged company continued its operation as NXP Semiconductors N.V.[39]

Notable events

Controversies

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.[64]

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.[65] IndustriALL and its affiliated unions in the Philippines condemned the dismissals.[66] [67] 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.[68] In the summer of 2015, a member of the Dutch parliament questioned trade minister Lilianne Ploumen regarding NXP's behaviour.[69]

See also

External links

NASDAQ:

Notes and References

  1. Web site: NXP Semiconductors N.V. 2023 Form 10-K Annual Report . . 22 February 2024.
  2. Web site: NXP Worldwide Locations NXP Semiconductors. 2023-03-29. nxp.com. en.
  3. Web site: Leading semiconductor companies in Europe in 2024, by market capitalization NXP Semiconductors.
  4. Web site: SEC Filings - NXP Semiconductors N.V. NXP Semiconductors. en.
  5. NXP Semiconductors N.V. Joins the NASDAQ-100 Index. CIOL. December 17, 2013.
  6. NXP and Freescale Announce $40 Billion Merger. March 1, 2015.
  7. http://www.rttnews.com/2588463/nxp-semiconductors-and-freescale-semiconductor-close-merger.aspx NXP Semiconductors And Freescale Semiconductor Close Merger
  8. News: Clark . Don . Higgins . Tim . 2016-10-27 . Qualcomm to buy NXP Semiconductors for $39 billion . Wall Street Journal. 0099-9660 . 2016-10-27 . subscription.
  9. News: Mitsuru . Obe . Akihide . Anzai . 2018-07-27 . China shifts blame to Qualcomm for collapse of NXP deal . Nikkei Asian Review. 2188-1413 . 2018-07-27.
  10. https://www.reuters.com/article/us-summit-nxp-idUSTRE74I4HC20110519 "NXP says demand for NFC chips to soar"
  11. http://www.ecnmag.com/News/2011/08/NXP-Consolidates-No--1-Position-in-Worldwide-ID-Market/ "NXP Consolidates No. 1 Position in Worldwide ID Market"
  12. By Elizabeth Weise, USA Today. “Car hackers say they've hijacked Jeep brakes.” August 8, 2016. Retrieved August 9, 2016.
  13. Web site: Worldwide Locations NXP Semiconductors. 2022-02-08. www.nxp.com.
  14. NEM Nijmegen, History of Philips semiconductors in Nijmegen
  15. Computer History Museum,Guide to the Don Liddie papers on Signetics . Retrieved February 2, 2013.
  16. http://www.electronicsweekly.com/blogs/david-manners-semiconductor-blog/2009/04/philips-is-world-no2-in-semico.html "Philips Is World No.2 In Semiconductors"
  17. News: INTERNATIONAL REPORT; CHIP BATTLE GROWS IN EUROPE . New York Times. May 11, 1987 . May 27, 2011 . limited.
  18. News: COMPANY NEWS; PHILIPS IN $1 BILLION DEAL FOR VLSI TECHNOLOGY . New York Times . May 4, 1999 . May 27, 2011 . Reuters . limited.
  19. http://www.electronics-eetimes.com/en/philips-targets-end-06-for-chips-unit-ipo-or-merger?cmp_id=7&news_id=189600014 "Philips targets end '06 for chips unit IPO or merger"
  20. News: KKR, Bain Sell NXP in Initial Offering at 46% Discount to LBO . Bloomberg News. August 6, 2010 . May 27, 2011 . subscription.
  21. https://www.forbes.com/2006/09/01/nxp-phillips-semi-passports-cx_cn_0901nxp.html "NXP Hits The Ground Running"
  22. http://www.eetimes.com/electronics-news/4064679/Philips-Semiconductors-to-become-NXP "Philips Semiconductors to become NXP"
  23. https://web.archive.org/web/20080423125143/http://www.businessweek.com/globalbiz/content/aug2006/gb20060802_684076.htm "What Are KKR's Plans for Philips Semi?"
  24. http://www.eetimes.com/electronics-news/4186777/NXP-pays-285-million-for-Silicon-Labs-cellular-unit "NXP pays $285 million for Silicon Labs' cellular unit"
  25. https://archive.today/20130121221857/http://www.edn.com/article/458776-ST_NXP_Wireless_changes_name_to_ST_Ericsson_85_of_employees_in_R_D.php "ST-NXP Wireless changes name to ST-Ericsson, 85% of employees in R&D"
  26. Web site: Screen Printing Software.
  27. http://www.eetimes.com/electronics-news/4076900/NXP-to-acquire-Conexant-s-set-top-box-business "NXP to acquire Conexant's set-top box business"
  28. http://uk.reuters.com/article/nxp-idUKLC51227120080912 "UPDATE 2-NXP restructures: affects 4,500 jobs, costs $800 mln"
  29. http://www.electronicsweekly.com/Articles/2009/10/05/47103/nxp-sells-digital-tv-chip-business-takes-stake-in-trident.htm "NXP sells digital TV chip business, takes stake in Trident"
  30. Web site: Nexperia Begins Life Divorced from NXP Semiconductors. 2022-02-08. www.electronicdesign.com.
  31. NXP.com, "NXP celebrates 50 years in logic!". Retrieved February 4, 2013.
  32. http://www.eetimes.com/electronics-news/4194157/Van-Houten-leaves-NXP-as-former-TI-Agere-exec-takes-over "Van Houten leaves NXP as former TI, Agere exec takes over"
  33. Web site: 2021-05-24 . Kurt Sievers, President and CEO of NXP Semiconductors, Joins GSA’s Board of Directors . 2023-10-18 . www.businesswire.com . en.
  34. Web site: Navigating through change: An interview with NXP Semiconductors’ Kurt Sievers McKinsey . 2023-10-18 . www.mckinsey.com.
  35. News: Dana. Mattioli. Gillian. Tan. 1 March 2015. NXP, Freescale Agree to Merger: Cash-and-stock deal values U.S. chip maker at $11.8 billion. Wall Street Journal. subscription.
  36. Web site: 28 May 2015. NXP to Sell RF Power Business for $1.8 Billion. everythingRF.
  37. Web site: NXP History. 2022-02-08. www.nxp.com.
  38. Web site: Angers. Ray. 5 March 2015. NXP/Freescale Merger a Union of Equals. https://web.archive.org/web/20150307105258/http://www.chipworks.com/en/technical-competitive-analysis/resources/blog/nxpfreescale-merger-a-union-of-equals/. 7 March 2015.
  39. NXP. "NXP and Freescale Announce Completion of Merger." December 03, 2015. Retrieved August 17, 2017.
  40. http://www.eetimes.com/electronics-news/4204903/NXP-buys-Jennic "NXP buys Jennic, boosts short-range RF portfolio"
  41. Web site: NXP Announces Pricing of Its Initial Public Offering.
  42. http://www.electronicsweekly.com/Articles/2010/12/22/50175/nxp-to-sell-off-sound-solutions-business.htm "NXP to sell off Sound Solutions business"
  43. https://web.archive.org/web/20121018105229/http://uk.reuters.com/business/quotes/DOV.N/key-developments/article/2357878 "Dover Corporation Completes Acquisition of Sound Solutions from NXP Semiconductors N.V."
  44. http://www.eetimes.com/electronics-news/4370389/NXP-Catena-wireless-analog-automotive "NXP buys Dutch design house for automotive thrust"
  45. http://www.eetimes.com/electronics-news/4390769/IDT-buys-NXP-s-data-converter-assets "IDT buys NXP's data converter assets"
  46. http://nfctimes.com/news/nxp-ceo-we-know-we-re-going-have-more-competition "NXP CEO: 'We Know We're Going to Have More Competition'"
  47. Web site: Cisco, NXP Place Bet on Connected Car Company . Wall Street Journal . January 4, 2013 . February 1, 2013 . subscription.
  48. http://www.computerworld.com/s/article/9235779/NXP_plans_to_cut_700_to_900_jobs_worldwide "NXP plans to cut 700 to 900 jobs worldwide"
  49. Web site: NXP Semiconductors :: Media Center.
  50. Web site: NXP sacks union leaders. 16 July 2014.
  51. Web site: Apple: Demand Jobs Back For Fired iPhone Workers.
  52. Web site: WeEn Semiconductors Electronic components. Distributor, online shop – Transfer Multisort Elektronik . 2022-06-07 . www.tme.com.
  53. News: NXP Semiconductors to Sell Standard Products Unit for $2.75 Billion. Beckerman. Josh. 2016-06-14. Wall Street Journal. 0099-9660. 2016-06-14 . subscription.
  54. Web site: About WeEn . 2022-06-07 . www.ween-semi.com.
  55. News: 4 April 2017 . Qualcomm, NXP receive antitrust approval . Reuters .
  56. News: Qualcomm to refile China antitrust application for $44 billion NXP.... Miller. Matthew. U.S.. 2018-04-17. en-US.
  57. Web site: Abuelsamid . Sam . NXP Acquires OmniPhy To Help Ramp In-Car Networking To Gigabit Speeds . 2023-10-18 . Forbes . en.
  58. Web site: 2018-09-03 . NXP scoops up OmniPHY for autonomous driving push . 2023-10-18 . ZDNET . en.
  59. NXP Completes Acquisition of Marvell's Wi-Fi and Bluetooth Connectivity Assets. NXP USA, Inc. 2019-12-06. GlobeNewswire News Room. 2020-01-04.
  60. NXP Semiconductors Shareholders Elect Kurt Sievers as Chief Executive Officer. NXP USA, Inc. 2020-05-27. GlobeNewswire News Room. 2020-05-27.
  61. NXP Announces HoverGames Challenge 2: Help Drones Help Others. NXP USA, Inc. 2020-06-18. GlobeNewswire News Room. 2020-06-18.
  62. NXP Delivers Secure, Scalable Edge-Connected Platforms Based on its i.MX RT Crossover Processors and Wi-Fi/Bluetooth Solutions. NXP USA, Inc. 2020-07-21. GlobeNewswire News Room. 2020-07-21.
  63. NXP UWB technology included in Samsung Galaxy Note20 Ultra. NXP USA, Inc . 2020-08-11. GlobeNewswire News Room. 2020-08-11.
  64. Meike Remmers. Irene Schipper. Unable to connect. Research on labour disputes at NXP. June 2015. GoodElectronics.
  65. Philippines: Entire union executive sacked for not working on national holiday. IndustriALL Global Union. 2014-05-07. 2021-02-20.
  66. Web site: NXP Semiconductors labour abuses in Philippines. Jyrki. Raina. Jyrki Raina. IndustriALL Global Union. 2014-08-26. Geneva.
  67. Web site: Solidarity Message for the NXP semiconductors workers from the Philippine affiliates. 2014-06-19. Manila. IndustriALL Global Union.
  68. News: Philippines: "They tried to crush us, and failed," say NXP unionists. Equal Times. Torres. Estrella. 2014-10-09.
  69. Web site: Parliamentary questions & answers regarding NXP Semiconductors. GoodElectronics. 2021-02-20.