NXP Semiconductors

NXP Semiconductors N.V.
Company type	Public company
Industry	Semiconductors
Predecessor	Philips Semiconductors
Founded	2006; 20 years ago
Founder	Philips (origin as part of Philips)
Headquarters	Eindhoven, Netherlands
Area served	Worldwide
Key people	Kurt Sievers (President and CEO)
Products	Semiconductors, NFC chipsets, MIFARE contactless card technology, automotive gateway solutions
Number of employees	34,000 (2024)
Website	www.nxp.com

NXP Semiconductors N.V. is a semiconductor producer based in Eindhoven, Netherlands. As of 2024, it holds the position of the third-largest semiconductor firm in Europe by market value. The company has a workforce of approximately 34,000 employees spread across more than 30 nations and reported revenues of $13.3 billion in 2023. Originating from Philips during the 1950s, NXP was established as an independent organization in 2006.

The acronym "NXP" stands for Next eXPerience.

Overview

NXP emerged as a separate entity from Philips in 2006 and became publicly traded on August 6, 2010, listed on Nasdaq under the symbol "NXPI". It was included in the Nasdaq-100 index in December 2013 and later joined the S&P 500 in 2021.

The company played a pivotal role in developing near field communication (NFC) technology alongside Sony and Inside Secure, providing NFC chipsets that facilitate secure mobile transactions and data sharing. Its product portfolio includes semiconductors used for eGovernment applications such as electronic passports, RFID tags, and transportation access control systems. NXP’s MIFARE contactless card technology is extensively implemented in leading public transit networks globally. To improve cybersecurity within vehicles, NXP offers gateway solutions that segregate communication across automotive networks.

Prominent clients include Apple, Dell, Ericsson, and Samsung.

Philips Era

Philips initiated small-scale manufacturing operations in Nijmegen in 1953 under its "Icoma" division (Industrial Components and Materials), followed by the establishment of a new plant in 1955. In 1965, Icoma was integrated into Philips’ "Elcoma" group (Electronic Components and Materials). The acquisition of Silicon Valley’s Signetics in 1975—recognized as the first company dedicated to integrated circuits and inventor of the 555 timer IC—elevated Philips to the position of the world’s second-largest semiconductor manufacturer. By 1987, Philips had become Europe’s leading semiconductor producer. In 1988, all semiconductor-related subsidiaries, including Signetics, Faselec (Switzerland), and Mullard (UK), were consolidated into the Components division. The semiconductor operations were separated into Philips Semiconductors in 1991. In June 1999, Philips expanded its semiconductor footprint by acquiring VLSI Technology, ranking it sixth globally.

2000s

In December 2005, Philips declared its intention to spin off Philips Semiconductors as a standalone legal entity. By September 2006, Philips divested an 80.1% stake to private equity firms including KKR, Bain Capital, Silver Lake Partners, Apax Partners, and AlpInvest Partners. The company was rebranded as NXP (Next eXPerience) and officially introduced at the Internationale Funkausstellung Berlin (IFA) consumer electronics exhibition. At this time, NXP was among the top ten semiconductor companies worldwide.

In February 2007, NXP expanded its Mobile and Personal business by acquiring Silicon Laboratories’ AeroFONE single-chip phone and power amplifier product lines. In 2008, this division was restructured into a joint venture with STMicroelectronics; by 2009, STMicroelectronics acquired NXP's share to establish ST-Ericsson—a fifty-fifty partnership with Ericsson Mobile Platforms. Also in 2008, NXP enhanced its Home business by purchasing Conexant’s set-top box division. That September, NXP undertook a global reorganization of manufacturing, R&D, and administrative functions that resulted in a reduction of approximately 4,500 positions. In October 2009, NXP divested its Home business unit to Trident Microsystems.

2010s and 2020s

Prior to divesting Nexperia in June 2016, NXP was a key provider of discrete and standard logic components, celebrating five decades in the logic sector by March 2012 through its heritage from Signetics and Philips Semiconductors.

The inaugural CEO of NXP was Frans van Houten, followed by Richard L. Clemmer taking the helm in 2009. Since May 2020, Kurt Sievers has held the position of president and CEO.

In March 2015, NXP revealed plans to merge with rival Freescale Semiconductor. To enable this transaction, NXP divested its RF Power division to JAC Capital for US$1.8 billion, which was subsequently renamed Ampleon. Both firms boasted longstanding histories—NXP originating from Philips and Freescale from Motorola—and reported similar revenues (US$4.8 billion for NXP and US$4.2 billion for Freescale in 2013). While NXP concentrated on near field communication (NFC) technologies and high-performance mixed signal (HPMS) solutions, Freescale specialized in microprocessors and microcontrollers. Their patent holdings were also closely matched. The merger finalized on December 7, 2015, with the unified company continuing under the name NXP Semiconductors N.V.

On October 27, 2016, Qualcomm announced intentions to acquire NXP for $44 billion, marking the largest semiconductor acquisition at that time. Nonetheless, due to trade complications involving China, Qualcomm withdrew from the deal, officially terminating the agreement on July 26, 2018.

Worldwide sites

NXP Semiconductors is headquartered in Eindhoven, Netherlands, and operates numerous facilities worldwide.

Wafer fabs

R&D and Design

Test and assembly

Sales

Joint ventures

VSMC
European Semiconductor Manufacturing Company (ESMC)
[Systems on Silicon Manufacturing Company (SSMC) Pte. Ltd.] (61%)
Datang NXP Semiconductors Co., Ltd. (49%)
Advanced Semiconductor Manufacturing Co. Ltd. (27%)
Cohda Wireless Pty Ltd. (23%)

Noteworthy Developments

On July 26, 2010, NXP expanded its smart home and energy solutions by acquiring Jennic, based in Sheffield, UK, integrating technologies such as Zigbee and JenNet-IP.
NXP made its debut on the Nasdaq stock exchange on August 6, 2010, offering 34 million shares at a price of $14 each.
In December 2010, NXP divested its Sound Solutions division to Knowles Electronics for $855 million; the transaction was finalized in July 2011.
To enhance its automotive offerings, NXP purchased the electronic design consultancy Catena in April 2012.
July 2012 saw NXP selling its high-speed data converter assets to Integrated Device Technology.
The Identification segment of NXP experienced a revenue increase of 41% in 2012, reaching $986 million, largely fueled by NFC chips and secure element products.
On January 4, 2013, NXP partnered with Cisco to invest in Cohda Wireless, focusing on connected vehicle technologies.
In the same month, NXP announced plans to reduce its global workforce by 700 to 900 employees to lower support service expenses.
In May 2013, NXP acquired Code Red Technologies, specializing in embedded software development tools.
Labor disputes led to controversy in July 2014 when NXP terminated several union organizers.
A joint venture named WeEn Semiconductors was formed in Shanghai in August 2015 through collaboration with Beijing JianGuang Asset Management.
On June 14, 2016, a consortium including JAC Capital and Wise Road Capital acquired Nexperia from NXP; concurrently, WeEn Semiconductors began supplying power semiconductors such as SiC devices.
Qualcomm obtained U.S. antitrust clearance in April 2017 for its $47 billion acquisition of NXP; however, approval from Chinese regulators was still pending with resubmitted applications.
The i.MX 8 series was unveiled in early 2017, featuring Cortex-A53 and Cortex-A72 cores alongside Cortex-M4F cores.
The i.MX 8M series was introduced during CES 2017.
In September 2018, NXP purchased OmniPHY to enhance automotive Ethernet subsystem capabilities for autonomous vehicle applications.
On December 6, 2019, NXP completed the acquisition of wireless connectivity assets from Marvell Technology.
The HoverGames Challenge 2 drone competition was launched by NXP on June 18, 2020 to encourage drone technology innovation.
On July 21, 2020, NXP released secure edge-connected platforms based on i.MX RT crossover processors integrated with Wi-Fi/Bluetooth solutions.
January 5, 2023 marked the introduction of the industry's first 28 nm RFCMOS radar single-chip designed for safety-critical ADAS applications; DENSO incorporated this technology into advanced platforms.
In December 2023, NXP and Foxconn inaugurated a joint laboratory at Foxconn’s Nankan Facility in Taiwan aimed at accelerating software-defined electric vehicle development.

Disputes

In March 2013, workers at NXP’s Bangkok facility were locked out following deadlocked negotiations regarding a new work schedule with their trade union affiliated with the TEAM. Management conducted individual questioning sessions about union demands and subsequently denied entry to those who supported the union’s position. TEAM responded by organizing protests outside both the factory and the Dutch embassy and filed a complaint with the National Human Rights Commission. After intervention by the Ministry of Labour, a memorandum assigned authority over scheduling decisions to the Labour Relations Committee. This committee ruled in June that the proposed schedule complied with Thai labor laws. Nevertheless, the National Human Rights Commission opposed this ruling and suggested reinstating the previous schedule. Despite this recommendation, NXP continues enforcing consistent twelve-hour shifts.

In May 2014, twenty-four trade union officials were dismissed from NXP’s Cabuyao plant located within the Philippines’ special economic zone. These workers were members of the MWAP and were terminated amid ongoing collective bargaining discussions. Management asserted that dismissals resulted from a refusal to work on April 9; however, employees cited two months of unpaid wages as their reason for protest. The IndustriALL federation and its Philippine affiliates condemned these terminations. By September of that year, MWAP and NXP reached an agreement that reinstated twelve workers while offering separation packages to others alongside commitments for long-term wage enhancements. In 2015, Dutch parliamentarian Lilianne Ploumen raised concerns with trade authorities regarding labor practices at NXP.

External links