Royal Philips Electronics has announced it will start the process of creating a separate legal structure for its Semiconductors business. According to the company, this move will give it the flexibility to pursue strategic options for further strengthening longer-term performance.
In early 2005 Philips introduced a Business Renewal program to improve the Semiconductor division’s competitiveness and bring profitability through the cycle to between 5 and 15%. It was also designed to increase market share in the Semiconductors division’s four core businesses, including its Automotive & Identification division, which is heavily involved in the move to embed its contactless chips into millions of passports worldwide.
"This move will lead to increased flexibility for our Semiconductor business to invest, grow and build scale in the competitive semiconductor market, while continuing to leverage the strengths of Philips overall. This is good news for our customers and employees,” said Frans van Houten, CEO of Philips Semiconductors.