New company prepares to enter global market in Q3 2008
Created from the mobile and wireless businesses of STMicroelectronics and NXP, which together generated $3 billion USD in revenue in 2007, the new company will begin operations in a strong position to meet customer needs in 2G, 2.5G, 3G, multimedia, connectivity and all future wireless technologies. ST-NXP Wireless is expected to enter the market in number three position once full closure of the joint venture takes place, as scheduled, in the third quarter of 2008.
It was also announced today that the management team of ST-NXP Wireless will comprise experienced industry leaders from both parent companies. Alain Dutheil, presently chief operating officer (COO) of STMicroelectronics, has been assigned to lead ST-NXP Wireless as Chief Executive Officer (CEO) focusing exclusively on the new joint venture.
The Executive Committee of ST-NXP Wireless, led by Alain Dutheil, will include:
-- Abhijit Bhattacharya, currently financial controller, Multimarket Semiconductors Business Unit, NXP, who is nominated to take the position of Chief Financial Officer of the joint venture
-- Tommi Uhari, current executive vice president and general manager of Mobile, Multimedia & Communications Group, STMicroelectronics
-- Marc Cetto, current executive vice president and general manager of Mobile & Personal Business Unit, NXP.
"The new name, ST-NXP Wireless, clearly illustrates the joining together of two complementary and formidable forces in the worldwide market to create a new global wireless powerhouse," commented Alain Dutheil, designated CEO, ST-NXP Wireless. "Our new company will be uniquely positioned to continue and extend customer relationships with the key players in the mobile and wireless industry, leveraging the passion and expertise of what is one of the best pools of talents in the industry."
ST-NXP Wireless will be among the few companies with the scale to make the R&D investments necessary to deliver current and future wireless technologies. The joint-venture will combine key design, sales and marketing, and back-end manufacturing assets from both parent companies into a streamlined organisation that will rely on its parent companies and foundries for wafer fabrication services. ST-NXP Wireless will be headquartered in Switzerland. Aiming to close in Q3 2008, the deal is subject to regulatory approvals and labor council consultation.
Some of the statements contained in this release that are not historical facts are statements of future expectations and other forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934, each as amended) based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those in such statements.
Such forward-looking statements are subject to various risks and uncertainties, which may cause actual results and performance of our business to differ materially and adversely from the forward-looking statements. Certain such forward-looking statements can be identified by the use of forward-looking terminology such as "believes", "may", "will", "should", "would be" or "anticipates" or similar expressions or the negative thereof or other variations thereof, or by discussions of strategy, plans or intentions. Some of the risk factors we face are set forth and are discussed in more detail in "Item 3. Key Information - Risk Factors" included in our Annual Report on Form 20-F for the year ended December 31, 2007, as filed with the SEC on March 3, 2008. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this release as anticipated, believed or expected. We do not intend, and do not assume any obligation, to update any information or forward-looking statements set forth in this release to reflect subsequent events or circumstances.
About STMicroelectronics
STMicroelectronics is a global leader in developing and delivering semiconductor solutions across the spectrum of microelectronics applications. An unrivalled combination of silicon and system expertise, manufacturing strength, Intellectual Property (IP) portfolio and strategic partners positions the Company at the forefront of System-on-Chip (SoC) technology and its products play a key role in enabling today's convergence markets. The Company's shares are traded on the New York Stock Exchange, on Euronext Paris and on the Milan Stock Exchange. In 2007, the Company's net revenues were $10 billion. Further information on ST can be found at www.st.com.
About NXP
NXP is a top 10 semiconductor company founded by Philips more than 50 years ago. Headquartered in Europe, the company has 37,000 employees working in more than 20 countries and posted sales of USD 6.3 billion in 2007. 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. News from NXP is located at www.nxp.com.
Web site:
http://www.st.com/
http://www.nxp.com/