Merged NXP, Freescale focused on the road ahead

December 08, 2015 // By Peter Clarke
NXP Semiconductors NV and Freescale Semiconductor Inc. have completed a merger that has been pending since May 2015 and rather than dwelling on expected rationalization company executives have discussed opportunities for the company to lead the way in developing markets.

The merger has created the world's sixth largest chip company with annual revenues of about $10 billion.

The merged entity continues under the NXP name, continues to be headquartered in Eindhoven, The Netherlands, and to be led by Rick Clemmer as CEO. The combination has produced a clear market leader in automotive semiconductors and in general-purpose microcontroller sales and executives from the "new NXP" announced that the company would operate with five business units: RF power; digital networking; security and connectivity; automotive; and standard products.
 
However, there is a great emphasis on the opportunities for the company in the areas of security, connectivity and automotive. These are seen as areas where the combined entity leads the market while being well placed to leverage that leadership into the developing Internet of Things market and connected automobile.

 

Ruediger Stroh, evp of security and connectivity business at NXP.

Ruediger Stroh, who becomes executive vice president of the security and connectivity, spoke on a conference call about how IoT needs a secure infrastructure to reach its potential, His main point was the enlarged NXP is the only company able to provide end-to-end secure communications, from leaf nodes through gateways to the edge of the network and up to the data center. This was also used as an example of how NXP and Freescale dovetail together even down to NXP's leading position in ZigBee complementing Freescale's position as a founder member of the Thread initiative.

Next: automotive