NXP Semiconductors


NXP Semiconductors N.V.
FoundedFounded in 1961; 61 years ago (1961) as Signetics
Spun-off in 2006[1]
HeadquartersHigh Tech Campus, Eindhoven, Netherlands[2][3]
Key people
Kurt Sievers, President & CEO
RevenueDecrease US$8.612 billion (2020)
Increase US$85.0 million (2018)
Decrease US$22 million (2018)
Total assetsDecrease US$215.3 billion (2018)
Total equityDecrease US$106.9 billion (2018)
Number of employees
29,000 (2020)[4]

NXP Semiconductors N.V. is a Dutch multinational semiconductor manufacturer with headquarters in Eindhoven, Netherlands that focuses in the automotive industry.[2][3] The company employs approximately 31,000 people in more than 35 countries, including 11,200 engineers in 33 countries.[4] NXP reported revenue of $9.4 billion in 2018.[5]

Originally spun off from Philips in 2006, a merger agreement was announced with Freescale Semiconductor in March 2015, to form a US$40 (equivalent to $43.67 in 2020) billion company.[6][7] The acquisition closed on 7 December 2015.

On 27 October 2016, it was announced that Qualcomm would try to buy NXP,[8] but because the Chinese merger authority did not approve the acquisition before the deadline set by Qualcomm, it was effectively cancelled on 26 July 2018.[9]


NXP said it was the fifth-largest non-memory semiconductor supplier in 2016, and the leading semiconductor supplier for the secure identification, automotive and digital networking industries.[10] The company was founded in 1953 as part of the electrical and electronics firm Philips, with manufacturing and development in Nijmegen, Netherlands.[11] Known then as Philips Semiconductors, the company was sold to a consortium of private equity investors in 2006, at which point the company's name was changed to NXP.[12]

On August 6, 2010, NXP completed its initial public offering, with shares trading on NASDAQ under the ticker symbol NXPI. On December 23, 2013, NXP Semiconductors was added to the NASDAQ 100.[13] Finally, on March 2, 2015, it was announced that NXP Semiconductors would merge with chip designer and manufacturer Freescale Semiconductor in a $40 billion US-dollar deal.[14][7] The merger was closed on December 7, 2015.[15]

NXP Semiconductors provides mixed signal and standard products based on its security, identification, automotive, networking, radio frequency, analog signal, and power management expertise. With an emphasis on security of the connected vehicle and the Internet of things, the company's products are used in automotive, identification, wired and wireless infrastructure, lighting, industrial, consumer, mobile and computing applications. For example, in order to protect against potential hackers, NXP offers gateways to automotive manufacturers that prevent communication with every network within a car independently.[16]

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.[17] 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.[18]

In addition, NXP manufactures automotive chips for in-vehicle networking, passive keyless entry and immobilization, and car radios.[19] NXP invented the I²C interface over 30 years ago and has since supplied products using it.[20] Before the divestiture of Nexperia, NXP was also a volume supplier of standard logic devices, and celebrated its 50 years in logic (via its history as both Signetics and Philips Semiconductors) in March 2012.[21]

NXP owns over 9,000 issued or pending patents.[4]

Worldwide sites

NXP Headquarters in Eindhoven, Netherlands, July 2011
NXP LPC1114 in 33-pin HVQFN package and LPC1343 in 48-pin LQFP package, both ARM Cortex-M microcontrollers

NXP Semiconductors is headquartered in Eindhoven, Netherlands. The company has operations in more than 35 countries, with engineering design teams in 23 countries.[4]

NXP currently has 14 manufacturing sites, with seven test and assembly sites and seven wafer fabs:

Test and assembly
Wafer fabs

Joint ventures and other major interests



In 1953 Philips started a small scale production facility in the center of the Dutch city Nijmegen as part of the Dutch Philips division "Icoma" (Industrial components and materials), in 1965 it became part of the new division "Elcoma" (Electronic components and materials). Soon a new factory was built and it opened in 1955.[23]

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"[24] 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."[25] In 1987, Philips was ranked Europe's largest semiconductor maker, with sales of $1.36 billion in 1986.[26]

Philips Semiconductors

The names Elcoma, Signetics and all the other names of local Philips semiconductor subsidiaries like Faselec in Switzerland and Mullard in Great Britain merged into Philips Components in 1988 and that was renamed Philips Semiconductors in 1991.[23]

Philips acquired VLSI Technology in June 1999. At the time, the acquisition made Philips the world's sixth largest semiconductor company.[27]


December 2005, Philips announced its intention to legally separate its semiconductor division, Philips Semiconductors, into an independent legal entity.[28] In September 2006, Philips completed the sale of an 80.1% stake in Philips Semiconductors to a consortium of private equity investors consisting of Kohlberg Kravis Roberts (KKR), Bain Capital, Silver Lake Partners, Apax Partners, and AlpInvest Partners.[29]

The new company name NXP (from Next eXPerience) was announced on August 31, 2006,[12] and 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.[30] At the time, CEO Frans van Houten emphasized the importance of NXP in enabling "vibrant media" technologies in mobile phones, digital TVs, portable music players and other consumer electronics devices.[31]

Independent company

NXP's first acquisition as an independent company was in 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.[32] Fourteen months later, 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.[33] Similarly, in April 2008, NXP announced it would acquire the set-top box business of Conexant to complement its existing Home business unit.[34][35] In October 2009, NXP announced that it would sell its Home business unit to Trident Microsystems.[36]

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.[37]

President and CEO Rick Clemmer took over from Frans van Houten on January 1, 2009.[38] Clemmer has emphasized the importance of "high performance mixed signal" products as a key focus area for NXP.[39] As of 2011, "standard products" including components such as small signal, power and integrated discretes[40] accounted for 30 percent of NXP's business.[39]

Notable events

  • On July 26, 2010, NXP announced that it had acquired Jennic based in Sheffield, UK,[41] which now operates as part of its smart home and energy product line, using ZigBee and JenNet-IP.
  • On August 6, 2010, NXP announced its initial public offering at NASDAQ, with 34,000,000 shares, pricing each $14.[42]
  • In December 2010, NXP announced that it would sell its Sound Solutions business to Knowles Electronics, part of Dover Corporation, for $855 million in cash.[43] The acquisition was completed as of July 5, 2011.[44]
  • In April 2012, NXP announced its intent to acquire electronic design consultancy Catena to work on automotive applications.[45]
  • In July 2012, NXP sold its high-speed data converter assets to Integrated Device Technology.[46]
  • In 2012, revenue for NXP's Identification business unit was $986 million, up 41% from 2011, in part due to growing sales of NFC chips and secure elements.[47]
  • On January 4, 2013, NXP and Cisco announced their investment in Cohda Wireless, an Australian company focused on car-to-car and car-to-infrastructure communications.[48]
  • In January 2013, NXP announced 700-900 redundancies worldwide in an effort to cut costs related to "support services".[49]
  • In May 2013, NXP announced that it acquired Code Red Technologies, a provider of embedded software development such as the LPCXpresso IDE and Red Suite.[50]
  • In July 2014, NXP was reported to have sacked union organisers.[51] A campaign was started for their reinstatement.[52]
  • On June 14, 2016, it was announced that Nexperia would be divested from NXP to a consortium of financial investors consisting of Beijing Jianguang Asset Management Co., Ltd (“JAC Capital”) and Wise Road Capital LTD (“Wise Road Capital”).[53] This transaction is expected to close in the first quarter of 2017 pending all required regulatory approvals and employee representative consultations.[53]
  • In April 2017, Qualcomm received approval from U.S. antitrust regulators for the acquisition of NXP for $47 billion.[54] However, the acquisition has not received approval from Chinese authorities and Qualcomm has refiled an antitrust application and request to purchase with the PRC Ministry of Commerce.[55]
  • In September 2018, NXP announced that it acquired OmniPHY, a provider of automotive Ethernet subsystem technology.
  • On December 6, 2019, NXP announced the completion of the acquisition of the wireless connectivity assets from Marvell.[56]
  • On May 27, 2020, NXP announced that at its Annual General Meeting of Shareholders (“AGM”) that shareholders overwhelmingly approved the appointment of Kurt Sievers as an executive director and the company’s Chief Executive Officer effective immediately thereby replacing Richard Clemmer, who previously led the company for 11 years. In this capacity Mr. Sievers will also remain President of NXP, a role he has held since 2018.[57]
  • On Jun 18, 2020, NXP Announces HoverGames Challenge 2: Help Drones Help Others[58]
  • On Jul 21, 2020, NXP Delivers Secure, Scalable Edge-Connected Platforms Based on its i.MX RT Crossover Processors and Wi-Fi/Bluetooth Solutions[59]
  • On Aug 11, 2020, NXP’s industry-first solution to combine UWB fine-ranging, NFC, Secure Element, and embedded SIM (eSIM) is included in Samsung’s new Galaxy Note20 Ultra[60]

Acquisition of Freescale Semiconductor

In March 2015, a merger agreement was announced through which NXP would acquire rival Freescale Semiconductor.[61] The RF Power Division was sold to JAC Capital for $1.8 billion and was rebranded as Ampleon, in a transaction closed in November 2015.[62] On December 7, 2015, NXP completed its acquisition of Freescale Semiconductor and the merged company continued operations as NXP Semiconductors N.V.[63]

Both elements have deep roots stretching back to when they were part of Philips NV (in the case of NXP), and Motorola (Freescale). Each had comparable revenue figures; US$4.8B and US$4.2B for NXP and Freescale respectively in 2013. NXP primarily focuses on near field communication (NFC) and high-performance mixed signal (HPMS) hardware. Freescale focuses on its microprocessor and microcontroller. Both companies possess roughly equal patent portfolios.[64]

Certainly, each company brings core strengths to the combined organization, NFC from NXP and microcontrollers from Freescale. Also, both companies have been actively involved in litigation over the years as both plaintiff and defendant, so a larger and, more importantly, a more geographically diverse patent portfolio could likely prove useful in such matters. Chipworks' analysts suggest the newly merged company will divest itself of many properties as the merger progresses.[64]

Some analysts believe cost savings after the two companies merge are expected to be about $500M dollars. Customers are ultimately divided over the consolidation of their product families and how it may affect their own development and end-products.[64]


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.[65]

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.[66] IndustriALL and its affiliated unions in the Philippines condemned the dismissals.[67][68] 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.[69] In the summer of 2015, a member of the Dutch parliament questioned trade minister Lilianne Ploumen regarding NXP's behaviour.[70]

See also


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  3. ^ a b "CORPORATE OVERVIEW (AUGUST 2020)" (PDF). Official website of NXP Semiconductors. Retrieved 11 August 2020. Headquartered in Eindhoven, Netherlands
  4. ^ a b c d "NXP at a Glance" (PDF). NXP Semiconductors Netherlands B.V. 7 February 2017. Archived from the original (PDF) on 23 December 2015. Retrieved 26 July 2018.
  5. ^ "NXP Semiconductors Reports Fourth Quarter and Full-year 2018 Results". NXP Semiconductors. Retrieved 2020-01-04.
  6. ^ "Media Center-NXP". www.nxp.com. Retrieved October 4, 2017.
  7. ^ a b "NXP and Freescale Announce $40 Billion Merger". Archived from the original on 2017-10-04.
  8. ^ Clark, Don; Higgins, Tim (2016-10-27). "Qualcomm to Buy NXP Semiconductors for $39 Billion". The Wall Street Journal. ISSN 0099-9660. Retrieved 2016-10-27.
  9. ^ Obe, Mitsuru; Anzai, Akihide (2018-07-27). "China shifts blame to Qualcomm for collapse of NXP deal". Nikkei Asian Review. ISSN 2188-1413. Retrieved 2018-07-27.
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  13. ^ "NXP Semiconductors N.V. Joins the NASDAQ-100 Index". CIOL (Press release). December 17, 2013.
  14. ^ "NXP and Freescale Announce $40 Billion Merger" (Press release). March 1, 2015.
  15. ^ NXP Semiconductors And Freescale Semiconductor Close Merger RTTNews. Retrieved on 2015-12-13.
  16. ^ By Elizabeth Weise, USA Today. “Car hackers say they've hijacked Jeep brakes.” August 8, 2016. Retrieved August 9, 2016.
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  18. ^ "NXP Consolidates No. 1 Position in Worldwide ID Market" Archived 2012-04-02 at the Wayback Machine, ECN Europe, August 4, 2011. Retrieved November 12, 2011.
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  54. ^ Editorial, Reuters (4 April 2017). "Qualcomm, NXP receive antitrust approval". Reuters.
  55. ^ Miller, Matthew. "Qualcomm to refile China antitrust application for $44 billion NXP..." U.S. Retrieved 2018-04-17.
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  57. ^ NXP USA, Inc (2020-05-27). "NXP Semiconductors Shareholders Elect Kurt Sievers as Chief Executive Officer". GlobeNewswire News Room. Retrieved 2020-05-27.
  58. ^ NXP USA, Inc (2020-06-18). "NXP Announces HoverGames Challenge 2: Help Drones Help Others". GlobeNewswire News Room. Retrieved 2020-06-18.
  59. ^ NXP USA, Inc (2020-07-21). "NXP Delivers Secure, Scalable Edge-Connected Platforms Based on its i.MX RT Crossover Processors and Wi-Fi/Bluetooth Solutions". GlobeNewswire News Room. Retrieved 2020-07-21.
  60. ^ NXP USA, Inc (2020-08-11). "NXP UWB technology included in Samsung Galaxy Note20 Ultra". GlobeNewswire News Room. Retrieved 2020-08-11.
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  62. ^ "NXP to Sell RF Power Business for $1.8 Billion". everythingRF. 28 May 2015.
  63. ^ NXP. "NXP and Freescale Announce Completion of Merger." December 03, 2015. Retrieved August 17, 2017.
  64. ^ a b c Angers, Ray (5 March 2015). "NXP/Freescale Merger a Union of Equals". Archived from the original on 7 March 2015.
  65. ^ Meike Remmers; Irene Schipper (June 2015). Unable to connect. Research on labour disputes at NXP (Report). GoodElectronics.
  66. ^ "Philippines: Entire union executive sacked for not working on national holiday" (Press release). IndustriALL Global Union. 2014-05-07. Retrieved 2021-02-20.
  67. ^ Raina, Jyrki (2014-08-26). "NXP Semiconductors labour abuses in Philippines" (PDF). Geneva: IndustriALL Global Union.
  68. ^ "Solidarity Message for the NXP semiconductors workers from the Philippine affiliates" (PDF). IndustriALL Global Union. Manila. 2014-06-19.
  69. ^ Torres, Estrella (2014-10-09). "Philippines: "They tried to crush us, and failed," say NXP unionists". Equal Times.
  70. ^ "Parliamentary questions & answers regarding NXP Semiconductors" (PDF). GoodElectronics. Retrieved 2021-02-20.

External links

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