NXP
Encyclopedia
NXP Semiconductors is one of the Worldwide Top 20 Semiconductor Sales Leaders, and was originally founded by Philips
more than 50 years ago. Formerly known as Philips Semiconductors, the company was sold by Philips to a consortium of private equity
investors in 2006. The new name, NXP, stood for the consumer's "next experience", according to then-CEO Frans van Houten
. On August 6, 2010, NXP completed its IPO, with shares trading on NASDAQ
under the ticker symbol NXPI.
NXP Semiconductors provides High Performance Mixed Signal and Standard Product solutions based on its RF
, analog
, power management
, interface, security and digital processing expertise. More informally, NXP has characterized its strategy as focusing on "products with no big chip in the middle." These semiconductors are used in a wide range of "smart" automotive, identification, wireless infrastructure, lighting
, industrial, mobile, consumer and computing applications. Headquartered in the Netherlands
, the company has approximately 28,000 employees working in more than 25 countries and posted sales of USD 4.4 billion in 2010.
NXP is the co-inventor of NFC or Near Field Communication
technology along with Sony
, and supplies NFC chip sets which enable mobile phones to be used to pay for goods, and store and exchange data securely. NXP ranks No. 1 in chips for eGovernment applications such as electronic passports
; No. 1 in transport and access management, with the chip set
and contactless card
for MIFARE
used by many major public transit systems worldwide; and is No. 1 in RFID tags and labels.
In addition, NXP is the global market leader in many other areas, including automotive chips for in-vehicle networking, passive keyless entry and immobilization, and car radios, as well as silicon tuners for the TV and set-top-box market. As of February 2011, NXP had shipped over one billion ARM
processor-based chips and is the only provider of microcontrollers with a roadmap based exclusively on 32-bit ARM architecture.
According to CEO Rick Clemmer, key growth areas for NXP include energy-efficient GreenChip
technology for power and lighting, telematics
, authentication technology, and solutions for the Smart Home or home automation
market. NXP is also involved in sensors for various applications such as automotive, white goods and home appliances, industrial automation, and building automation.
Philips
Koninklijke Philips Electronics N.V. , more commonly known as Philips, is a multinational Dutch electronics company....
more than 50 years ago. Formerly known as Philips Semiconductors, the company was sold by Philips to a consortium of private equity
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
investors in 2006. The new name, NXP, stood for the consumer's "next experience", according to then-CEO Frans van Houten
Frans van Houten
François Adrianus "Frans" van Houten is the successor to Gerard Kleisterlee, as Chief Executive Officer of the Dutch company of Royal Philips Electronics , taking over the position on April 1, 2011.-Biography:...
. On August 6, 2010, NXP completed its IPO, with shares trading on NASDAQ
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
under the ticker symbol NXPI.
NXP Semiconductors provides High Performance Mixed Signal and Standard Product solutions based on its RF
Radio frequency
Radio frequency is a rate of oscillation in the range of about 3 kHz to 300 GHz, which corresponds to the frequency of radio waves, and the alternating currents which carry radio signals...
, analog
Analog signal
An analog or analogue signal is any continuous signal for which the time varying feature of the signal is a representation of some other time varying quantity, i.e., analogous to another time varying signal. It differs from a digital signal in terms of small fluctuations in the signal which are...
, power management
Power management
Power management is a feature of some electrical appliances, especially copiers, computers and computer peripherals such as monitors and printers, that turns off the power or switches the system to a low-power state when inactive. In computing this is known as PC power management and is built...
, interface, security and digital processing expertise. More informally, NXP has characterized its strategy as focusing on "products with no big chip in the middle." These semiconductors are used in a wide range of "smart" automotive, identification, wireless infrastructure, lighting
Lighting
Lighting or illumination is the deliberate application of light to achieve some practical or aesthetic effect. Lighting includes the use of both artificial light sources such as lamps and light fixtures, as well as natural illumination by capturing daylight...
, industrial, mobile, consumer and computing applications. Headquartered in the Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
, the company has approximately 28,000 employees working in more than 25 countries and posted sales of USD 4.4 billion in 2010.
NXP is the co-inventor of NFC or Near Field Communication
Near Field Communication
Near field communication, or NFC, allows for simplified transactions, data exchange, and wireless connections between two devices in proximity to each other, usually by no more than a few centimeters. It is expected to become a widely used system for making payments by smartphone in the United States...
technology along with Sony
Sony
, commonly referred to as Sony, is a Japanese multinational conglomerate corporation headquartered in Minato, Tokyo, Japan and the world's fifth largest media conglomerate measured by revenues....
, and supplies NFC chip sets which enable mobile phones to be used to pay for goods, and store and exchange data securely. NXP ranks No. 1 in chips for eGovernment applications such as electronic passports
Biometric passport
A biometric passport, also known as an e-passport or ePassport, is a combined paper and electronic passport that contains biometric information that can be used to authenticate the identity of travelers...
; No. 1 in transport and access management, with the chip set
Chipset
A chipset, PC chipset, or chip set refers to a group of integrated circuits, or chips, that are designed to work together. They are usually marketed as a single product.- Computers :...
and contactless card
Proximity card
Proximity card is a generic name for contactless integrated circuit devices used for security access or payment systems. The standard can refer to the older 125 kHz devices or the newer 13.56 MHz contactless RFID cards, most commonly known as contactless smartcards.Modern proximity cards...
for MIFARE
MIFARE
MIFARE is the NXP Semiconductors-owned trademark of a series of chips widely used in contactless smart cards and proximity cards. According to the producers, billions of smart card chips and many millions of reader modules have been sold...
used by many major public transit systems worldwide; and is No. 1 in RFID tags and labels.
In addition, NXP is the global market leader in many other areas, including automotive chips for in-vehicle networking, passive keyless entry and immobilization, and car radios, as well as silicon tuners for the TV and set-top-box market. As of February 2011, NXP had shipped over one billion ARM
ARM Holdings
ARM Holdings plc is a British multinational semiconductor and software company headquartered in Cambridge. Its largest business is in processors, although it also designs, licenses and sells software development tools under the RealView and KEIL brands, systems and platforms, system-on-a-chip...
processor-based chips and is the only provider of microcontrollers with a roadmap based exclusively on 32-bit ARM architecture.
According to CEO Rick Clemmer, key growth areas for NXP include energy-efficient GreenChip
GreenChip
GreenChip is a process concept and technology invented by Philips Semiconductors which is used in company’s range of power adapter ICs with the same name. GreenChip ICs are used in power adapters and power supplies, as well as energy-saving CFL bulbs and LED lighting products...
technology for power and lighting, telematics
Telematics
Telematics typically is any integrated use of telecommunications and informatics, also known as ICT...
, authentication technology, and solutions for the Smart Home or home automation
Home automation
Home automation is the residential extension of "building automation". It is automation of the home, housework or household activity. Home automation may include centralized control of lighting, HVAC , appliances, and other systems, to provide improved convenience, comfort, energy efficiency and...
market. NXP is also involved in sensors for various applications such as automotive, white goods and home appliances, industrial automation, and building automation.
Philips Semiconductors
- SigneticsSigneticsSignetics, once a major player in semiconductor manufacturing, made a variety of devices which included integrated circuits, bipolar and MOS, the Dolby circuit, logic, memory and analog circuits. They developed microprocessors like the 2650, the bipolar 8X300 and had licensed Motorola 68000...
was acquired by PhilipsPhilipsKoninklijke Philips Electronics N.V. , more commonly known as Philips, is a multinational Dutch electronics company....
in 1975. 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." In 1987, Philips-Signetics, a unit of Philips, was ranked Europe's largest semiconductor maker, with sales of $1.36 billion in 1986.
- PhilipsPhilipsKoninklijke Philips Electronics N.V. , more commonly known as Philips, is a multinational Dutch electronics company....
acquired VLSI TechnologyVLSI TechnologyVLSI Technology, Inc was a company which designed and manufactured custom and semi-custom ICs. The company was based in Silicon Valley, with headquarters at 1109 McKay Drive in San Jose, California...
in June 1999. At the time, the acquisition made Philips the world's sixth largest semiconductor company.
- In December 2005, Philips announced its intention to legally separate its semiconductor division, Philips Semiconductors, into an independent legal entity.
- In September 2006, Philips completed the sale of an 80.1% stake in Philips Semiconductors to a consortium of private equityPrivate equityPrivate equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
investors consisting of Kohlberg Kravis Roberts & Co.Kohlberg Kravis Roberts & Co.KKR & Co. L.P. is an American-based global private equity firm, specializing in leveraged buyouts, based in New York. The firm sponsors and manages private equity investment funds. Since its inception, the firm has completed over $400 billion of private equity transactions and was a pioneer in...
(KKR), Bain CapitalBain CapitalBain Capital LLC is a Boston-based private equity firm founded in 1984 by partners from the consulting firm Bain & Company. Originally conceived as an early-stage, growth-oriented investment fund, Bain Capital today manages approximately $65 billion in assets, and its strategies include private...
, Silver Lake PartnersSilver Lake PartnersSilver Lake is a US-based private equity firm focused on leveraged buyout and growth capital investments in technology, technology-enabled and related industries...
, Apax PartnersApax PartnersApax Partners LLP is a global private equity and venture capital firm, headquartered in London. The company also operates out of eight other offices in New York, Hong Kong, Mumbai, Tel-Aviv, Madrid, Stockholm, Milan and Munich. The firm, including its various predecessors, have raised...
, and AlpInvest PartnersAlpInvest PartnersAlpInvest Partners is a private equity investment manager and at the end of 2009 globally managed over €42 billion ....
.
Spin-off of NXP Semiconductors
- The new company name NXP was announced on August 31, 2006, and was officially launched during the Internationale FunkausstellungInternationale Funkausstellung BerlinThe IFA or Internationale Funkausstellung Berlin is one of the oldest industrial exhibitions in Germany. Between 1924 and 1939 it was an annual event, but as from 1950 it was organized on a two yearly basis until 2005. Since then it has become an annual event again, held in September...
(IFA) consumer electronics show in Berlin. The newly independent NXP was ranked as one of the world's top 10 semiconductor companies. At the time, CEO Frans van HoutenFrans van HoutenFrançois Adrianus "Frans" van Houten is the successor to Gerard Kleisterlee, as Chief Executive Officer of the Dutch company of Royal Philips Electronics , taking over the position on April 1, 2011.-Biography:...
emphasized the importance of NXP in enabling "vibrant media" technologies in mobile phones, digital TVs, portable music players and other consumer electronics devices.
- NXP's first acquisition as an independent company was in 2007, when NXP announced that it would acquire Silicon LaboratoriesSilicon LaboratoriesSilicon Laboratories, Inc. is a mixed signal fabless semiconductor company based in Austin, Texas.The company was founded in 1996 by three veterans from the former Crystal Semiconductor – Nav Sooch, Dave Welland and Jeff Scott . The company's CEO is Necip Sayiner. The company went public in...
’ AeroFONE single-chip phone and power amplifier product lines to strengthen its Mobile and Personal business. Fourteen months later, NXP announced that it would transform its Mobile and Personal business unit into a joint venture with STMicroelectronicsSTMicroelectronicsSTMicroelectronics is an Italian-French electronics and semiconductor manufacturer headquartered in Geneva, Switzerland.While STMicroelectronics corporate headquarters and the headquarters for EMEA region are based in Geneva, the holding company, STMicroelectronics N.V. is registered in Amsterdam,...
, which in 2009 became ST-EricssonST-EricssonST-Ericsson is a global wireless platform and semiconductor supplier to four of the top five mobile handset manufacturers. ST-Ericsson is a 50/50 joint venture of Ericsson and STMicroelectronics established on February 3, 2009...
, a 50/50 joint ventureJoint ventureA joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
of EricssonEricssonEricsson , one of Sweden's largest companies, is a provider of telecommunication and data communication systems, and related services, covering a range of technologies, including especially mobile networks...
Mobile Platforms and STMicroelectronicsSTMicroelectronicsSTMicroelectronics is an Italian-French electronics and semiconductor manufacturer headquartered in Geneva, Switzerland.While STMicroelectronics corporate headquarters and the headquarters for EMEA region are based in Geneva, the holding company, STMicroelectronics N.V. is registered in Amsterdam,...
, after ST purchased NXP's 20% stake.
- Similarly, in April 2008, NXP annnounced it would acquire the set-top box business of ConexantConexantConexant Systems, Inc. is an American semiconductor company, formerly the semiconductor division of Rockwell International. Currently it's privately owned by Golden Gate Capital, an equity firm headquartered in San Francisco.-History:...
to complement its existing Home business unit. In October 2009, NXP announced that it would sell its Home business unit to Trident MicrosystemsTrident MicrosystemsTrident Microsystems is a supplier of display-processors for flat panel displays . At one time, Trident was also a supplier of PC graphics chipsets and sound controllers.- History :...
.
- In September 2008, NXP announced that it would restructure its manufacturing, R&D and back office operations, resulting in 4,500 job cuts worldwide, for annual savings of $550 million.
Focus on High Performance Mixed Signal and Standard Products
- Current President and CEO Rick Clemmer took over from Frans van Houten on January 1, 2009. Clemmer has emphasized the importance of "high performance mixed signal" products as a key focus area for NXP. As of 2011, "standard products" including components such as small signal, power and integrated discretes accounted for 30 percent of NXP's business.
- On July 26, 2010, NXP announced that it had acquired JennicJennicJennic Limited was a privately held UK-based fabless semiconductor company founded in 1996. The company developed a range of wireless microcontrollers that support low-power wireless standards, particularly 802.15.4, 6LoWPAN and ZigBee, and also supplied wireline communications...
, which now operates as its Low Power RF business, offering wireless connectivity solutions such as JenNet-IPJenNet-IPJenNet-IP software is an enhanced 6LoWPAN network layer for ultra-low-power 802.15.4 based wireless networking. Using a "mesh-under" networking approach, JenNet-IP is designed to enable the Internet of Things and can serve wireless networks in excess of 500 nodes.In May 2011, NXP Semiconductors...
.
- On August 6, 2010, NXP announced its IPO at NASDAQNASDAQThe NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
, with 34,000,000 shares, pricing each $14.
- In December 2010, NXP announced that it would sell its Sound Solutions business to Knowles Electronics, part of Dover CorporationDover CorporationDover Corporation is a Fortune 500 and S&P 500 manufacturer of specialized industrial products and equipment within six segments. Dover Corporation is based in Downers Grove, Illinois, a western suburb of Chicago. The company relocated its headquarters from New York in mid-2010.-History: can trace...
, for $855 million in cash. The acquisition was completed as of July 5, 2011.
- In 2010, NXP posted revenues of $589 million worldwide across its Identification business unit, including secure transactions, secure identity, and tagging and authentication product lines.
Main markets
NXP offers High Performance Mixed Signal and Standard Product solutions for a wide range of applications, including:- Automotive
- Identification
- Wireless Infrastructure
- Lighting
- Industrial
- Mobile
- Consumer
- Computing
Worldwide sites
- Europe
- Eindhoven, Netherlands
- Nijmegen, Netherlands
- Dresden, Germany
- Hamburg, Germany
- Munich, Germany
- Stuttgart, Germany
- Caen, France
- Belfast, UK
- Manchester, UK (formerly known as Hazel Grove campus)
- Sheffield, UK (acquired JennicJennicJennic Limited was a privately held UK-based fabless semiconductor company founded in 1996. The company developed a range of wireless microcontrollers that support low-power wireless standards, particularly 802.15.4, 6LoWPAN and ZigBee, and also supplied wireline communications...
Limited in 2010) - Southampton, UK
- Vienna, Austria
- Gratkorn, Austria
- Leuven, Belgium
- Zurich, Switzerland
- Budapest, Hungary
- Asia
- Bangalore, India
- Hyderabad, India
- Cabuyao, LagunaCabuyao, LagunaCabuyao , or officially known as the Municipality of Cabuyao is a First Class urbanized municipality in the province of Laguna, Philippines. It is located about 43 kilometers southeast of Metro Manila and it is located at the western portion of Laguna...
, PhilippinesPhilippinesThe Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam... - Tokyo, Japan
- Osaka, Japan
- Seoul, Korea
- Kaohsiung, Taiwan
- Hongkong, China
- Dongguan, China
- Shanghai, China
- ShenzhenShenzhenShenzhen is a major city in the south of Southern China's Guangdong Province, situated immediately north of Hong Kong. The area became China's first—and one of the most successful—Special Economic Zones...
, China - Seremban, Malaysia
- Batam, Indonesia
- Singapore
- Bangkok, Thailand
- Haifa, Israel
- Americas
- Austin, TX, USA
- Boston, MA, USA
- San Diego, CA, USA
- San Jose, CA, USA
- Schaumburg, IL, USA
- Tempe, AZ, USA
External links
- NXP Semiconductors – company website
- NXP's no-big-chip-in-the-middle strategy – EE Times article about NXP's high-performance mixed signal strategy
- FAQ around the MIFARE issue on NXP website