NXP sells its discrete logic and power semiconductor biz to Chinese investors

NXP Semiconductors N.V. agree to sell its Standard Products business which includes Discrete, Logic and PowerMOS semiconductor devices to China-based consortium of financial investors consisting of Beijing Jianguang Asset Management Co., Ltd and Wise Road Capital LTD for an approximate price of $2.75 billion. After the process of acquisition, the new business to be named as Nexperia with its headquarters at Nijmegen, the Netherlands. NXP said its standard products business generated a annual revenue of $1.2 billion in the fiscal year of 2015. NXP semiconductors is one of the wide range semiconductor supplier all the way from diodes to vision SOC for self driving cars in automotive. It takes a huge amount of effort to manage multiple verticals in a tough semiconductor market. Many of the US semiconductor companies, except Texas Instruments have moved away from broad supplier to focused product supplier. Motorola did that by forming Freescale and On Semiconductor. Eventually Freescale's financial performance was not that satisfactory and got acquired by NXP. All these past years somehow the three big European semiconductor companies Infineon, STMicroelectronics and NXP semiconductors try to maintain the tag of broad range semiconductor suppliers in the world, but now NXP is becoming more vertical. Though discrete semiconductor business is commoditised a lot, companies ...