NXP Sells Biz Unit to China, Downsizes 25%

By Peter Clarke, EETimes, London, Jun. 14, 2016 – 

NXP Semiconductor NV (Eindhoven, The Netherlands) has agreed to sell its standard products business unit to a Chinese consortium. This will involve the transfer of about one quarter of NXP's total workforce that is responsible for about one-fifth of NXP revenues.

The consortium - Beijing Jianguang Asset Management Co. Ltd. (JAC Capital) and Wise Road Capital Ltd. - has agreed to pay approximately $2.75 billion for the business. The consortium has also promised to honor the existing labor conditions of a workforce that will be forming a new company to be branded Nexperia and headquartered in Nijmegen, The Netherlands. The transaction is expected to close in the first quarter of 2017, pending all required regulatory approvals and employee representative consultations.

NXP's standard products business is supplier of discrete semiconductors, simple logic parts and power MOSFETs and had annual sales in fiscal 2015 of about $1.2 billion or about one-fifth of NXP's total sales for the fiscal year.

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