Date: 28th Jan 2011
NXP Semiconductor invests into tech of
high business differentiating potential
NXP Semiconductor is avoiding strong and direct presence
in consumer, computer and telecom domain, i.e. televisions,
mobile phones, and computers (portable and desktop). It
has divested its TV chip business by selling it to Trident
and also owns stake in Trident. The mobile wireless chip
business of NXP is now part of ST-Ericsson. It is focusing
and investing in the areas with high business differentiating
potentials. NXP advancing so much in some of the areas such
as security and identification semiconductor chip business,
so that its competitors are kept much behind. The areas
where NXP is sharply focusing are security ID, automotive,
energy, and medical. If there is any company which has utilized
range of ARM's IPs to maximum extent; it's NXP Semiconductor.
Though NXP calls itself a high performance mixed signal
chip maker, its strategy is more towards selected high profit
applications rather than technology. Actually in this SoC
era there is not much separate analog and digital signal
now, its nearly all mixed signal and high performance, which
is essential to stay in the top 10 semiconductor list. The
surprise is NXP still keep its discrete semiconductor product
line, also its MCU product line; both of these product lines
face stiff competition. A guess of NXP divesting its discrete
and some of its general purpose MCU product line can prove
In a recently held CXO conclave, René Penning de
Vries, CTO of NXP Semiconductor was presenting the members
of India Semiconductor Association and other attendees the
product and technology capabilities of NXP Semiconductor.
NXP has given the world some of the best chips.
NXP is a long time investor in Indian market and entered
the Indian market much before the economic liberalization
of 90s. Since from the time it was part of Philips, NXP
is continuously investing in India both to tap the market
and local EE talent. But if we compared to some of the U.S.
companies such as Texas Instruments who entered Indian market
effectively during post -liberalization times, NXP should
have been in far more stronger position in Indian market.
TI, though a late investor compared to NXP but has gained
name in the Indian market faster, the reason is TI's more
openness and timely investment. ST Microelectronics is also
another company to name which has grown faster in Indian
However NXP continues to focus on Indian market, where it
has huge market opportunity for most of its product categories,
and it want to attend to the applications and products of
high return on investment.
NXP Semiconductor has launched a academic program for engineering
colleges called 'Anubhav' where it will open labs at engineering
college campuses to train students in semiconductor and
embedded systems related to its chips. R.V. College of Engineering,
PESIT and BMS college are the first three colleges in Bangalore
to have the NXP lab in their campuses.