Philips India to hive off semiconductor business

Bangalore, Sep 5 (UNI) Keeping in tune with the global developments, Philips India has hived off its semiconductor business and research in India and the new entity will be called the NXP semiconductors India limited from October one.

Philips had already floated three months ago, the Philips Semiconductors (India) following the decision of the parent company to sell a majority stake in the semiconductor business to private equity partners with the total transaction costing about 10 billion dollars.

Royal philips will hold a minority stake of 19.9 per cent in the new company called the NXP Semiconductors.

Philips Electronics India CEO K Ramachandran told newsmen here that the rechristened NXP Semiconductors would hold the semiconductor business apart from the semiconductor vertical of Philips Innovation centre. It would be headquartered in Bangalore, he added.

NXP Semiconductors Managing Director Rajeev Mehtani said that the new company would invest five million Euros in a new complex at the Innovation Campus next year. Over the next five years an additional investment of 250 million Euros have been planned.

Currently, it had a total staff strength of 700.

He said that apart from its own R and D wing, the Company would also enhance its partner strength to twenty from the current five.

Talks were already on with some of the Indian Software vendors and design houses, he added.

The company was presently working on leading edge technologies in 90 nanometer and 65 nanometer processes, in the areas of chip design and embeddded software and systems.

He said NXP India was a top five semiconductor MNC employer and a top three merchand semiconductor supplier to the Indian electronic industry with the current year's revenue estimated at Rs.500 crores.

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