SOURCE: NXP Semiconductors

NXP Semiconductors

September 26, 2013 03:00 ET

NXP Strengthens Footprint in Singapore and Upgrades R&D Capabilities

Establishing Singapore as Location for Some of NXP's Global Functions to Meet Growing Needs in Asia

SINGAPORE--(Marketwired - Sep 26, 2013) - NXP Semiconductors N.V. (NASDAQ: NXPI) today announced that it has strengthened its presence in Asia by establishing Singapore as its Global Headquarters for Standard Products, Global Headquarters for Operations, and ASEAN Headquarters for Sales & Marketing. This move brings NXP closer to its growing number of Asian customers, and establishes a base for further growth in the region.

"Our customers are our first priority, and with a majority based in Asia, this move will facilitate closer collaboration with them and help us to better understand their challenges and priorities," said Rick Clemmer, President and CEO of NXP Semiconductors. "From an innovation point of view, Asia is currently experiencing unprecedented growth in the design and manufacturing of semiconductor solutions, and with key business unit headquarters in Singapore, we have the ability to develop new relationships with technology partners that can benefit NXP on a global level."

NXP's Singapore based corporate R&D lab, which opened in May 2012, will also be expanding to retain a headcount of up to 80. Developing next generation technologies, including security chips used in biometric passports and automotive sensors that can potentially enable self-driving vehicles, this is NXP's second corporate R&D lab with the first being located in the Netherlands.

Further demonstrating its confidence in Singapore as a stable and flourishing environment for operations and innovation, NXP will increase its investments by S$20 million in R&D on top of the S$40 million spent over the last five years, and make a S$125 million capex investment over the coming years to upgrade the manufacturing capabilities for new technologies developed at Systems on Silicon Manufacturing Company Pte. Ltd. (SSMC). SSMC is a Joint Venture between NXP and Taiwan Semiconductor Manufacturing Company Ltd (TSMC) that offers flexible and cost effective semiconductor fabrication solutions. This significant investment will help SSMC scale-up the technical know-how of the current team and will allow them to work on cutting-edge manufacturing processes.

"We are pleased that NXP is growing its presence here," said Mr. Leo Yip, Chairman of the Singapore Economic Development Board (EDB). "NXP's expansion is a good example of how companies seeking to build closer partnership with their customers can use Singapore as a location from which to innovate and manufacture advanced semiconductor solutions. The upgrading of SSMC not only enhances NXP's global competitiveness but also strengthens Singapore's semiconductor manufacturing ecosystem, supporting the continued growth of the industry here."

Now more than ever, NXP Singapore will play a pivotal role in managing its Asia operations and will play a larger role in running NXP's global businesses.

About NXP Semiconductors
NXP Semiconductors N.V. (NASDAQ: NXPI) creates solutions that enable secure connections for a smarter world. Building on its expertise in High Performance Mixed Signal electronics, NXP is driving innovation in the automotive, identification and mobile industries, and in application areas including wireless infrastructure, lighting, healthcare, industrial, consumer tech and computing. NXP has operations in more than 25 countries, and posted revenue of $4.36 billion in 2012. Find out more at www.nxp.com.

Forward-looking Statements
This document includes forward-looking statements which include statements regarding NXP's business strategy, financial condition, results of operations and market data, as well as other statements that are not historical facts. By their nature, forward-looking statements are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements. Except for any ongoing obligation to disclose material information as required by the United States federal securities laws, NXP does not have any intention or obligation to publicly update or revise any forward-looking statements after NXP distributes this document, whether to reflect any future events or circumstances or otherwise. For a discussion of potential risks and uncertainties, please refer to the risk factors listed in NXP's SEC filings. Copies of NXP's SEC filings are available from the SEC website, www.sec.gov.