EE Times: What’s next operationally for NXP?
Clemmer: We've been very successful in the last several quarters with significant design wins at new customers. The real key for us is being able to ramp that efficiently.
Just to give a few examples: We will start shipping this quarter our first product for CFL lighting IC-based drivers, which would give CFL lighting the capability to [work with dimmers]. Our design wins in high-performance RF have increased 300 percent in the last couple of years, and we've increased market share for our microcontroller business 2-1/2 times.
The biggest challenge that we have in the near term is making sure that we have sufficient capacity to support our customers.
EE Times: Are you saying manufacturing capacity is currently constrained?
Clemmer: Very much so. We are adding capacity. In the first half of 2010, we spent about $100 million on capital expenditures, while we only spent $80 million for all of 2009.
We are clearly adding capacity in test and assembly as well as some specific packaging requirements. We are investing in our wafer fabs to expand capacity, both in the Netherlands and at our joint venture with TSMC in Singapore.