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NXP's Clemmer says focus produces winners all round
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EE Times


LONDON — Rick Clemmer CEO of Dutch chip manufacturer NXP BV (Eindhoven, The Netherlands) has made a robust defense of the latest restructuring deals he has made, saying that a focus on high-performance mixed-signal ICs at NXP and moving other businesses and some engineering functions out from NXP is producing winners all round.

In a telephone conference with EE Times Clemmer emphasized that NXP is planning for a future as a high-performance mixed-signal company. "We are focused on the business units where we can have leadership from a technology position." When asked if manufacturing would remain a core part of a focused NXP Clemmer answered by saying manufacturing operations must be competitive

NXP has extensive manufacturing resources including five wholly-owned wafer fabs and six IC assembly and test sites. NXP also has four joint venture wafer fabs.

Clemmer said he did have figures in mind for remaining staff and revenue run rate at the end of 2009, which will be one year after he took office, but declined to share the numbers. NXP employs approximately 29,000 people around the world according to its website.

"We are focused, we are driven. We said we would move the digital television and set-top box business to a better opportunity for us to win. And a place where we have 60 percent of the business is a very elegant solution," Clemmer said

Under a most recent deal Clemmer plans to move more than 160 engineers who create and maintain intellectual property cores, out to Virage Logic Corp. (Milpitas, Calif.) which will set up shop for them in Eindhoven. Under that deal NXP stands to receive 2.5 million shares in Virage, which is not a controlling interest, and must pay Virage $60 million over the next four years for continued engineering support.

"The IP, IP blocks, technology and patents are associated with leading-edge technology which we don't have a need for," said Clemmer. "What we are selling, well it is not standard because it is advanced technology, but it is CMOS IP that can now be used by the many." Clemmer said NXP would benefit as it can make money on the IP through its interest in Virage.



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