OT: Qualcomm to send NXP to the chop shop

Sounds really bad. Daniel Nenni's post was dated last August, do you know what's gone on since then?

I haven't heard anything here.

There's a local NXP design center at Elliot and Loop 101... populated by a bunch of pompous PhD's who can't handle Ohm's law... probably why they're being sent to the chop shop >:-} ...Jim Thompson

Den onsdag den 26. oktober 2016 kl. 03.11.10 UTC+2 skrev Jim Thompson:

the old Motorola/Freescale place?

-Lasse

Across the street on the south-side of Elliot. ...Jim Thompson

Across the street, on the south-side of Elliot. ...Jim Thompson

NXPs entire business unit "Standard Products" with its discrete waferfabs (Hamburg, Manchester) as well as the Asian assembly centers will be carved out into a new discrete semi company called "Nexperia", 100% owned by Chinese investors. Nijmegen will be the only remining fab of NXP. This will happen before the NXP/Qualcomm merger, so Nijmegen will be the only fab inherited by Qualcomm.

robert

I don't see a products or applications area with a name like that, at the NXP web site, what's in the "Standard Products" business unit?

Going through six months of press releases, an October 13, 2016 release had the best info.

"The NXP Standard Products business is an industry leading supplier of Discrete, Logic and PowerMOS semiconductors focused on the Automotive, Industrial, Computing, Consumer, and Wearable application markets. At the close of the transaction, the NXP Standard Products business will be branded Nexperia, which will be headquartered in Nijmegen, the Netherlands. For fiscal 2015, the NXP Standard Products business had annual revenue of $1.2 billion."

Strange, that description sounds like it includes what Qualcomm is paying for.

"Under the agreement, the entire scope of the NXP Standard Products business, including its management team, led by Frans Scheper, and approximately 11 thousand NXP employees will be transferred to Nexperia. Nexperia will be an independent company incorporated in the Netherlands, and will be fully owned by JAC Capital and Wise Road Capital upon the close of the transaction.

Hamburg, Germany, and the back-end facilities in Guangdong, China, Seremban, Malaysia, and Cabuyao, Philippines, will be transferred to Nexperia, as well as the in-house equipment manufacturer ITEC and all relevant patents and intellectual property associated with the Standard Products business."

That's 25% of NXPs 44,000 employees. NXP posted revenue of $6.1 billion in 2015, so the $1.2B is about 20% of that. I couldn't find any info on what NXP will be paid for this.

Bummer. Just ordered another couple of reels of BF862s for insurance. :(

Cheers

Phil Hobbs

Perhaps Qualcomm is more interested in their RF (radios) and higher integration and "software" stuff. Sounds reasonable, considering Qualcomm's other business. I didn't see them as being interested in transistors and diodes. ;-)

yeah, Qualcomm can probably use NXP's NFC stuff, like Mifare...,

That's exactly how I see it. IMO it's no accident that the Qualcomm merger was announced shortly after the ink on the Standard Products buy-out was dry.

robert

Selling 25% of the company is big, how come no mention to the stockholders of the $$ of the deal?

It's not 25%. I think BU SP is going for about $2bn and the rest for $50bn.

robert

It's 25% of the employees and 20% of the revenue, according to their press release. But whatever the terms of the SP sale, that accrues to NXP and is part of what Qualcomm gets for their payment, right? And hence what the stockholders get. But it seems too big a deal to not have full details.

I'm sure there are laws governing what stockholders have to get told about and what not. In my double role as stockholder employee of NXP I'm pretty happy about the deal -- because I work at an NXP waferfab that's part of the business unit being sold off to JAC. Since Rick Clemmer became CEO of NXP, he focused on the explosive growth of the newfangled Security and Connectivity business, combined with a healthy dislike for BU SP where people like me actually worked in factories. Slow and steady growth of an old cash cow is not what he's interested in, but the Chinese are. Since the announcement of the deal we've seen a surge in planned invest for tools and fab space at our European sites. Staff from the soon-to-be Qualcomm part are knocking at our door, looking for employment.

robert

well, Robert, I'm pleased to hear that. I don't what products are in what group, but I suspect your SP group has the NXP stuff we like to purchase and that we rely on getting in the future.

The new Chinese-owned company is going to be named "Nexperia" (how boring), and these are the products that are going to transition from NXP to Nexperia:

robert

Hmm, they don't list JFETs anywhere there.

Cheers

Phil Hobbs