Freescale Semiconductor is relegated to history... NXP Semiconductors aims for 'Secure Connection'

The vision chosen by the integrated NXP Semiconductors was ‘Secure Connection’.

NXP Semiconductors has completed its merger with Freescale Semiconductor, which had been underway since March. As a result, the name "Freescale" will be extinguished after ten months of merger work. The new NXP Semiconductors will focus on "security" and "connectivity," areas where both NXP and Freescale have previously excelled, as reflected in its new catchphrase, "Secure Connections for a smarter world."

Rising to the top of the market in automotive and communication processors, etc.

This reflects the company's commitment to expanding growth opportunities in line with technological trends where everything is becoming connected, everything is becoming smart, and security is becoming increasingly important. The 'basic physical strength' is already sufficient.

NXP Semiconductors is a market leader in secure ID, car entertainment, in-vehicle networking, secure car access, smart card MCUs, and small signal discretes, while Freescale is a market leader in communications processors, RF power transistors, automotive radar, and automotive safety.

The integrated NXP Semiconductors will be the market leader in communications processors, identity security, board-based MCUs, RF power transistors, automotive, and small signal discretes.

Shin Park-jae, who was appointed as the CEO of the integrated NXP Semiconductors from the previous CEO of NXP Semiconductors Korea, said, “We will focus NXP solutions on high-growth markets such as secure, connected cars, security & privacy, and smart connected solutions.”

In other words, it means that we will focus our capabilities on the connected car market, including ADAS, car entertainment, in-vehicle networking, and secure car access; the privacy security market, including mobile transactions, smart financial cards, and embedded security; and the smart connected market, including consumer (mobile audio, healthcare) and industrial (smart home buildings, smart cities, and M2M).

"We expect sales to triple thanks to our smart connectivity solutions."

Ultimately, these flagship markets are fueled by the explosive growth of smart connectivity solutions. The strategy is to secure smart infrastructure encompassing smart homes, smart healthcare, smart industries, and wearables.

Accordingly, Chairman Shin Bak-je emphasized, “NXP Semiconductors is the only company that can provide a complete secure smart connectivity solution,” and said, “Based on this, we will become a powerhouse in the IoT market by providing complete IoT solutions.”

They also announced that the RF business, which had been the final hurdle in the integration process, had been resolved. Because the combined RF market share of Freescale and NXP Semiconductors would have created a monopoly, they announced that they would inevitably sell NXP Semiconductors' RF business and retain Freescale Semiconductor's RF business.

Regarding the merger synergy effect in terms of sales, Chairman Shin said, “I think the greatest synergy will be in the automobile business,” and expressed his ambition, “In addition, sales growth is expected in the mobile and chip card fields, so we will increase the sales of the integrated NXP Semiconductors by more than three times based on our experience at the existing NXP Semiconductors Korea.”

In addition, Chairman Shin emphasized that NXP Semiconductors and Freescale are a merger of European and American companies, and a fusion of different corporate cultures, and expressed his opinion that it is urgent and important to unite as a team for business.