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.
Note: -Unit: $Million
-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
it is interesting to see some hypocritical, western-oriented, cold war-minded comments here
The world (in terms of population, not wealth) is not blind on what is real justice and what is hypocritical...
will stop here, this is a technical place, don't want to bring in any more political stuff
I don't mean business reasons alone for leaving China. There are legal roadblocks that the Chinese have put in place for why a company is stuck in China once they move there. For instance, foreign companies have to transfer their plant equipment to a Chinese owned entity. I know of one British manufacturer that tried to move their plant from China to Vietnam and they're still in court after 10yrs. The Chinese legal system is a sham controlled by locals.
Why doesn't the media explore the darker side of doing business in China.
@Neo1, I totally agree with you. I think all the companies should seriously consider entering both India and China markets because both of these markets provide excellent business opportunities to the companies.
It's sad to know that chinas control over Rare earth metals is hurting the sector. What is international community doing to tackle this matter ? Is it the reason why NXP shifted its base to China because it can have easy access to rare earth metal elements ?
Avoiding china for any semiconductor company is suicidal, they have to go with the flow else perish like many others. In fact their efforts should be lauded for transforming themselves. Even though it's contribution to its parent country's tax bucket is reduced its way better than the company filing for chapter-11.
Three decades after the West started trading with China, it is still run by the Communists, if anything much stronger now at the expense of the smaller industrial countries like Japan & Western Europe. While hot companies like Apple have been making mega billions with cheap Chinese labor, those that stumbled like Motorola, Nokia or were lured to China with the promise of a huge market ( e,g. Siemens, GE, Kawasaki ) and yes NXP were reduced to agree to their open blackmail and then have had the "pleasure" of being eaten ALIVE ( their technology stolen ) like in a fine Chinese Banquet.
Within a decade large US corp.s like GE will also be owned by the Chinese Communist Party. The only way to stop the rot is to boycott. There are enough opportunities outside China ( as usual Intel is smarter and ahead =of the pack dominated by Wall St. shysters and have moved Assembly & Test to Vietnam )
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