NXP to Sell Standard Chip Business?
According to Bloomberg, NXP Semiconductors is considering selling its standard products unit. The division makes NXP’s diodes, transistors, and other standard chip products, and could go for as much as $2 billion, according to Bloomberg, which identified Beijing’s JAC Capital as a potential buyer.
NXP Semiconductors merged with Freescale Semiconductor in 2015 to create become the market leader in automotive semiconductor solutions and general purpose microcontroller (MCUs) products. That deal created a company with over $10 billion in revenue, and contributed to what has been a historic era of consolidation for chipmakers.
Bloomberg Intelligence analyst Anand Srinivasan said, “It makes total sense, and it has been discussed before. It fits in with the company’s strategy and management’s desires.”
JAC previously bought NXP’s RF power unit in May 2015 for $1.8 billion, and NXP said in February that the two companies will form a joint venture in China.