NXP Semiconductors N.V. and Freescale Semiconductor announced the completion of their previously announced merger this week, creating an industry powerhouse focused on high-performance mixed signal semiconductors. The merged company will operate under NXP’s name, with global headquarters in the Netherlands.
The latest in a line of big-company deals, the NXP-Freescale merger creates an industry leader in the automotive space and in general-purpose microcontroller products. The new NXP has combined revenue of more than $10 billion and aims to focus on high-growth opportunities generated by the Internet of Things and a smarter, connected world.
In a letter to customers and shareholders, company President and CEO Rick Clemmer emphasized the firm’s leadership position in the automotive industry in particular.
“As a result of the merger, we have become the world leader in automotive semiconductors. This greatly empowers NXP to work shoulder to shoulder with the automotive industry, governments, institutions and consumer technology giants interested in this space,” Clemmer wrote. “Together we can drive the evolution and adoption of Secure Connected Vehicles and Automated Driving Assistance Solutions, as we prepare ourselves for a future of secure, self-driving vehicles.”
Clemmer also said he expects the company to continue to perform well heading into 2016: “… we reiterate today that we fully expect to continue to significantly out-grow the overall market, drive world-class profitability and generate even more cash, allowing us to continue creating significant value for NXP’s shareholders.”
NXP and Freescale announced the merger in March.