NXP and STMicroelectronics have entered into a joint venture (JV) to combine key wireless operations and offer major handset manufactures an improvement in 2G, 2.5G, 3G, multimedia, connectivity and all future wireless technologies.
According to statement released, the new company aims to well position itself with all of the vital technologies for Universal Mobile Telecommunication System (UMTS) for the emerging 3G Chinese standard; as well as other cellular, multimedia and connectivity capabilities, including WiFi, Bluetooth, GPS, FM Radio, USB, and UWB (Ultra-wideband), to effectively serve its global customers with complete wireless and mobile solutions across the spectrum of applications.
“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,” said Carlo Bozotti, President and CEO of STMicroelectronics.
According to iSuppli, a market research firm, the global handset market was 1.15 billion units in 2007 and is forecasted to grow at about an 8% compound annual growth rate through 2011. The handset semiconductor market represented 14% of the global semiconductor TAM in 2007, making up the second largest segment of the industry.
“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,” commented Frans van Houten, President and CEO of NXP.
“By creating this joint venture, we put most of the competitors at a distance. Together we will accelerate innovation which we anticipate will contribute to market share gains and improved financial performance.”
The new company will be incorporated in the Netherlands and headquartered in Switzerland with approximately 9,000 employees worldwide.
The JV will also integrate the Silicon Laboratories’ wireless and GloNav’s GPS operations recently acquired by NXP. |
