NXP, ST form wireless joint venture
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NXP and STMicroelectronics have announced the combination of what they call their ‘key wireless operations’ in a joint venture targeting the major handset manufacturers. According to both companies, the move will allow them to better meet customer needs in all future wireless technologies.
The new organisation will combine key design, sales and marketing and back end manufacturing assets from both companies into a streamlined worldwide joint venture that will rely on its parent companies and foundries for wafer fabrication services.
According to Carlo Bozotti, ST’s president and ceo: “The strength of this venture is its excellent relationships with key customers, as well as the complementary IP and product portfolios transferred from ST and NXP that create a rich and broad offering with the capability to deliver leading edge innovations to the market.”
Frans van Houten, NXP’s president and ceo, added: “The wireless semiconductor industry requires huge investments in new technology and innovative product roadmaps. This move will see two strong players propelling themselves into a leadership position.”
ST will take an 80% stake in the joint venture, paying NXP $1.55billion. NXP also has an exit plan which can be exercised in three years time.
