NXP Semiconductors (formerly Philips Semiconductors) has increased its holding in Singapore based SSMC (Systems on Silicon Manufacturing Co. Pte. Ltd.) from 50.5 percent to 61.2 percent, an increase of 10.7 percent, for a purchase price of approximately US$113 million, funded by cash at hand.
At the same time, NXP’s joint venture partner in SSMC, TSMC (Taiwan Semiconductor Manufacturing Company Limited), has increased its holding in SSMC to 38.8 percent. Both NXP and TSMC are purchasing these shares from EDBI (EDB Investments Pte. Ltd.), an entity of the Economic Development Board of Singapore.
“In just over five years SSMC has become the most sought after provider of CMOS foundry services, offering flexible and cost-effective semiconductor fabrication solutions. As such the company has been hugely successful and is financially very sound,” said Frans van Houten, President and Chief Executive Officer, NXP Semiconductors. “SSMC’s excellent business performance makes them a very attractive investment. In addition, SSMC continues to be an ideal production partner for NXP.”
“Buying EDBI shares will not change our collaboration with EDB going forward. EDB has been a very significant partner in supporting us for infrastructure cost and efficiency, and we remain committed to working together,” Frans van Houten added.
SSMC is recognized as a leading manufacturer of CMOS-based semiconductors, using process technologies to make wafers with line widths down to 140 nanometers, and boasts one of the larger eight-inch CMOS wafer fabs in the industry.
NXP uses SSMC to augment its fully owned eight-inch wafer CMOS capability, and also to jointly develop and share technological advances with TSMC.
NXP is a top 10 semiconductor company founded by Philips more than 50 years ago. Headquartered in the Netherlands, the company has 37,000 employees working in 20 countries across the world. NXP creates semiconductors, system solutions and software that deliver better sensory experiences in mobile phones, personal media players, TVs, set-top boxes, identification applications, cars and a wide range of other electronic devices.