NXP, however, remains optimistic. Just two weeks ago, when officials from China’s Ministry of Science and Technology were in Europe, their visit in the Netherlands included meetings with Philips Lighting and NXP in Eindhoven, among others, according to Clemmer.
Describing lighting as “the third largest source of energy consumption at home,” he noted that China is “absolutely serious about ‘energy reduction,’” which is one of the key targets of China’s current five-year plan spanning to 2015.
Despite current setbacks with CFL lighting, Clemmer is confident of China’s interest in what smart lighting can offer to energy reduction. NXP has recently opened up its JenNet-IP software stacks to selective partners including those in China to foster the development of unique apps, according to NXP’s CEO.
NXP’s third main focus – aside from identification and lighting – is automotive. Already dominant in the keyless car entry system market, the company is plotting to expand further by developing NFC-enabled multi-function car keys. “As we add more smarts into the keyless car entry system, we increase semiconductor content in the smart key by three to four times,” Clemmer explained.
Unlike other relatively new semiconductors companies, NXP’s good fortune – particularly leading positions in such areas as NFC-enabled smartphones, wirelessly connected lighting, and smart keyless car entry systems – appears closely tied to its former self (Philips Semiconductors) and the parent company’s large R&D investment over the last few decades.
With no disrespect for today’s NXP team, one question comes to mind: What will NXP do once it finishes eating the fruit of legacy technology advantages that date to a previous regime (before it became NXP)?
Clemmer seems little worried. He said, “We continue to invest in the advancements of each of our leading products… like substantially lowering the power and reducing the chip size for NFC chips.”
While NXP in old days couldn’t help investing in the development of every conceivable wireless technology on the planet, “we are now much more selective,” he added. Again, in Clemmer’s mind, it’s all about focus.
-HPMS is the High Performance Mixed Signal segment; STDP is the Standard
Products segment; MFG & OTHER is the combination of Manufacturing
Services and other corporate revenue.
-AUTO is the HPMS Automotive business; IDEN is
the HPMS Identification business; WILI is the HPMS Wireless
Infrastructure, Lighting and Industrial applications); MCC is HPMS
Mobile, Consumer and Computing business; STDP is the Standard Products