NXP/STMicroelectronics JV Launches

July 29, 2008

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ST-NXP Wireless, a new company bringing together key wireless operations of STMicroelectronics and NXP, will begin operations August 2 following completion of a deal announced earlier this year.

Owning thousands of communication and multimedia patents, the new joint venture will bring key technologies for UMTS (Universal Mobile Telecommunication System) and for the emerging TD-SCDMA standard, as well as other cellular, multimedia and connectivity capabilities -- including WiFi, Bluetooth, GPS, FM radio, USB, and UWB (ultra-wideband).

In particular, STMicroelectronics has a strong presence in the GPS-based automotive navigation systems market. NXP, an independent semiconductor company founded by Philips 50 years ago, acquired GPS technology provider GloNav Inc. earlier this year and announced a new assisted-GPS (AGPS) chip targeting the mobile handset market.

ST-NXP Wireless is being created from businesses that together generated $3 billion in revenue in 2007. At the closing, STMicroelectronics took an 80 percent stake in the joint venture and contributed $1.55 billion to NXP, including a control premium. The new organization will start with a cash balance of about $350 million.

The ST-NXP Wireless executive team will draw its leaders from both parent companies. Alain Dutheil, presently chief operating officer of STMicroelectronics, has been assigned to serve as the new company’s CEO. The ST-NXP Wireless Executive Committee, led by Dutheil, also includes Abhijit Bhattacharya, currently financial controller for NXP's Multimarket Semiconductors Business Unit; Tommi Uhari, currently executive vice president and general manager of ST's Mobile, Multimedia & Communications Group; and Marc Cetto, currently executive vice president and general manager of NXP's Mobile & Personal Business Unit.

Bhattacharya has been nominated to become CFO and, Uhari and Cetto have been nominated to serve as executive vice presidents and general managers.

ST-NXP Wireless will combine key design, sales and marketing, and back-end manufacturing assets from both parent companies, including wafer manufacturing capacity from both parent companies and foundries, while operating its own assembly and test facilities.

To be incorporated in Switzerland and headquartered in Geneva, ST-NXP Wireless will have in excess of 7,500 employees with major facilities around the world.