By Nick Flaherty www.flaherty.co.uk
Nearly a year on from the initial announcement, the merger of NXP and Freescale Semiconductor completed yesterday.
The results of the deal, announced in March 2015, is billed as creating a high performance mixed signal chip maker with revenue of over $10 billion, trading as NXP Semiconductor. This now makes NXP the market leader in automotive semiconductor solutions and in general purpose microcontroller (MCU) products, although how the two competing ARM-based lines of general purpose microcontrollers will shake out remains to be seen.
Security and the Internet of Things (IoT) will be key areas of growth, and combine both NXP and Freescale hardware and software design expertise.
“Through this merger we have created an industry powerhouse focused on the high growth opportunities in the Smarter World, capitalizing on the emerging opportunities offered by the accelerating demand for connectivity, processing and security. Today’s formation of the new NXP is a transformative step on our journey to become the industry leader in high performance mixed signal solutions,” said Rick Clemmer, CEO of NXP. “This merger enables us to deliver more complete solutions to our customers as we are emerging as the leader in the Secure Connections – and the supporting infrastructure – for the Smarter World domain. As a result, we reiterate today that we fully expect to continue to significantly out-grow the overall market, drive world-class profitability and generate even more cash, allowing us to continue creating significant value for NXP’s shareholders.”
So it's a fond farewell to Motorola's Semiconductor Products Sector (SPS) and the foray into private-equity and the fab-lite approach (which mapped well to NXP!)