The buyer is a Chinese consortium including Jianguang Asset Management Co (JAC)
and Wise Road Capital.
Six months ago, JAC Capital bought NXP’s RF power business for $1.8 billion.
The standard products division includes discretes, logic and PowerMOS devices for the automotive, computer and consumer markets.
When the deal is finalised in Q1 2017, the unit will be re-named ‘Nexperia’ and will be headquartered in Nijmegen, The Netherlands
The standard products group had revenues of $1.2 billion in 2015. It employs 11,000 people.
The unit has fabs in Manchester and Hamburg and back-end facilities in Guangdong, China, Seremban, Malaysia, and Cabuyao, Philippines, all of which will be transferred to Nexperia, as well as the in-house equipment manufacturer ITEC and all relevant patents and intellectual property associated with the business.
“This transaction is a positive accomplishment for all parties involved. It enables NXP to continue to focus on its High-Performance Mixed Signal business, furthering our Secure Connections for a Smarter World strategy,” says NXP CEO Rick Clemmer, “we believe the creation of Nexperia benefits our customers, as JAC Capital and Wise Road Capital will focus on global investments to enhance and support the future growth of the business.”
JAC’s Evaluation Committee chairman Brighten Li says: “We are pleased to have reached an agreement to acquire the Standard Products business from NXP with its strong team and established technology. We will enhance the competitive position of the business globally through thoughtful investment in R&D, manufacturing and customer service to strengthen its global market position. JAC Capital, with its strong background in financial industries and many years of experience in the semiconductor and telecom areas, will actively help the management team of the new company to achieve long term success. Additionally, we will continue to support the existing labour conditions for the Standard Product employees, as they are a critical component to the long term success of the business.”
Michael Zhang, a partner at Wise Capital, says: “We are committed to provide Nexperia the capital it requires to accelerate its global growth strategy, which we believe will help to accelerate product introductions in key target markets, while assuring no disruption to Nexperia’s global customer and supplier base. Although servicing a variety of markets, Nexperia will be especially increasing focus on automotive applications and providing their required high-level of quality solutions. In addition, we will help Nexperia expand its strong position in the fast-growing global emerging markets, through our strong network of industrial leaders.”