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  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 right.

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 market.

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.


 
          
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