LONDON The technology incubator division of Royal Philips Electronics has spun out Silicon Hive, a licensor of processor and related intellectual property, and as part of the deal, New Venture Partners, TVM Capital and Philips have together invested $10 million in the new company.
Philips retains a minority stake in the newly created Silicon Hive B.V. which plans a major expansion into new markets and territories.
The company says that as an independent semiconductor IP supplier it would have the freedom to license to the entire electronics industry. Silicon Hive B.V. will have offices in Eindhoven (The Netherlands), Silicon Valley (U.S.), Seoul (Korea) and Bangalore (India).
The company becomes the second in quick succession to be spun out of Philips Technology Incubator Group, formed four years ago to transform innovative Philips technologies into new business opportunities.
Earlier this year, Technology Capital SA of Luxemburg invested 21 million euro (about $27.5 million) in roll-up display pioneer Polymer Vision taking the company out of the majority ownership of Royal Philips Electronics.
Philips again retained a stake in the new company, this time of 20 percent.
And last year Philips Laser Sensors spun up into Philips Lighting Division to supply its Twin-eye Laser sensors to the PC peripheral and mobile industry.
Silicon Hive specializes in IP to enable semiconductor companies to make fully-programmable SoCs for applications such as mobile TV, mobile WiMax, video imaging, and high definition video signal processing. It was formed four years ago and has developed a range of tuned processor cores for communications and media processing applications as well as a sophisticated hardware and software design flow.
"Our silicon-proven cores are now starting to penetrate tier one semiconductor companies supplying major mobile phone and consumer electronics companies," Atul Sinha, CEO of Silicon Hive B.V. said in a statement Wednesday (April 25). "By leveraging award-winning Philips technology and solid investment from New Venture Partners and TVM Capital, Silicon Hive can now accelerate its growth plans and exploit this huge business opportunity," Sinha added.