EINDHOVEN, the Netherlands -- Philips Semiconductors here today announced a major reorganization in its semiconductor business, replacing its long-time chip leader in the Netherlands with a U.S. executive. The move represents the latest in a string of management changes at the troubled Dutch-based chip giant.
On Wednesday, Scott McGregor, the head of the Emerging Business Unit for Philips Semiconductors' U.S. subsidiary in Sunnyvale, Calif., was named to head up the company's worldwide chip operations, effective Sept. 1.
In the role, McGregor will become president and chief executive of Philips Semiconductors. McGregor--who will relocate to the company's headquarters in Eindhoven--replaces Arthur van der Poel, the long-time president and chief executive of Philips Semiconductors.
McGregor will report to Gerard Kleisterlee, the new group president and chief executive of Royal Philips Electronics, the parent company of Philips Semiconductors.
A spokeswoman for Philips in Sunnyvale, Calif. indicated that van der Poel will assume a new group-level role within the company. The long-time Philips executive will "oversee" both the company's semiconductor and component operations, although the spokewoman did not elaborate on his title.
The spokeswoman added that van der Poel will remain on the company's board.
The personnel changes follow what has been a rough period for Philips. Like many chip makers, the Dutch-based chip giant is suffering due to the ongoing downturn in the semiconductor market.
In its first quarter, for example, the company posted a loss of some $62.2 million on flat sales. It has also reduced its headcount by some 6,000 employees in recent time.
On top of that, there has been a changing of the guard at Philips. Last fall, for instance, the company named another U.S. executive, Matt Medeiros, to head its worldwide components division.
In April, it named a former Motorola Inc. executive to head up the Dutch company's chip manufacturing and foundry strategies (see April 13 story ).
And now, it has named another U.S. executive in McGregor to head up its entire chip operations. McGregor joined Philips Semiconductors in 1998, where he was responsible for the newly-created Emerging Businesses Unit in Sunnyvale. The unit focused on fast-growing markets, such as smart cards, networking chips, digital media processing, and other fields. This unit is said to have reached nearly $1 billion in sales.
He also helped with the successful integration of VLSI Technology, a company that Philips acquired for more than a $1 billion in 1999.