New company prepares to enter global market in Q3 2008
Geneva, Switzerland, and Eindhoven, The Netherlands – June 26, 2008 –
NXP, the independent semiconductor company founded by Philips, and STMicroelectronics (NYSE:STM), a leader in delivering advanced solutions for mobile products, today announced that their new joint venture name will be ST-NXP Wireless.
Created from the mobile and wireless businesses of STMicroelectronics and NXP, which together generated $3 billion USD in revenue in 2007, the new company will begin operations in a strong position to meet customer needs in 2G, 2.5G, 3G, multimedia, connectivity and all future wireless technologies. ST-NXP Wireless is expected to enter the market in number three position once full closure of the joint venture takes place, as scheduled, in the third quarter of 2008.
It was also announced today that the management team of ST-NXP Wireless will comprise experienced industry leaders from both parent companies. Alain Dutheil, presently chief operating officer (COO) of STMicroelectronics, has been assigned to lead ST-NXP Wireless as Chief Executive Officer (CEO) focusing exclusively on the new joint venture.
The Executive Committee of ST-NXP Wireless, led by Alain Dutheil, will include:
- Abhijit Bhattacharya, currently financial controller, Multimarket Semiconductors Business Unit, NXP, who is nominated to take the position of Chief Financial Officer of the joint venture
- Tommi Uhari, current executive vice president and general manager of Mobile, Multimedia & Communications Group, STMicroelectronics
- Marc Cetto, current executive vice president and general manager of Mobile & Personal Business Unit, NXP.
“The new name, ST-NXP Wireless, clearly illustrates the joining together of two complementary and formidable forces in the worldwide market to create a new global wireless powerhouse,” commented Alain Dutheil, designated CEO, ST-NXP Wireless. “Our new company will be uniquely positioned to continue and extend customer relationships with the key players in the mobile and wireless industry, leveraging the passion and expertise of what is one of the best pools of talents in the industry.”
ST-NXP Wireless will be among the few companies with the scale to make the R&D investments necessary to deliver current and future wireless technologies. The joint-venture will combine key design, sales and marketing, and back-end manufacturing assets from both parent companies into a streamlined organisation that will rely on its parent companies and foundries for wafer fabrication services. ST-NXP Wireless will be headquartered in Switzerland. Aiming to close in Q3 2008, the deal is subject to regulatory approvals and labor council consultation.
STMicroelectronics is a global leader in developing and delivering semiconductor solutions across the spectrum of microelectronics applications. An unrivalled combination of silicon and system expertise, manufacturing strength, Intellectual Property (IP) portfolio and strategic partners positions the Company at the forefront of System-on-Chip (SoC) technology and its products play a key role in enabling today's convergence markets. The Company's shares are traded on the New York Stock Exchange, on Euronext Paris and on the Milan Stock Exchange. In 2007, the Company’s net revenues were $10 billion. Further information on ST can be found at www.st.com.
NXP is a top 10 semiconductor company founded by Philips more than 50 years ago. Headquartered in Europe, the company has 37,000 employees working in more than 20 countries and posted sales of USD 6.3 billion in 2007. NXP creates semiconductors, system solutions and software that deliver better sensory experiences in mobile phones, personal media players, TVs, set-top boxes, identification applications, cars and a wide range of other electronic devices. News from NXP is located at www.nxp.com.