EINDHOVEN, THE NETHERLANDS: In a serious effort aimed at focusing on high-performance mixed-signal circuits, Dutch chip maker NXP BV is firming up measures to alter its digital consumer business and give it a strategic positioning. The Netherlands-based company will now aim at shaping a different capital structure; CEO Rick Clemmer has been quoted as saying.
The company which has cut its indebtedness from $6 billion to just over $4.8 billion in recent months, is now looking at taking advantage of market rates.
Though a sell-off of NXP's digital consumer business has been rued out by Clemmer, it is believed that NXP might go in for a joint venture where NXP does not have the majority share.
According to the CEO, NXP’s 45-nm digital TV chip “is a very exciting part, but we're looking for a different capital structure. We might be in venture with a partner where we are not a majority owner. The area is of strategic value and we want to participate in making money from it."
Earlier, NXP under previous CEO Frans van Houten, had spent lots of money in the digital TV and set-top box market. Last year in April, the company had also made public its plans to acquire Conexant Systems' set-top box business in anticipation that such a buy out would put the company in a position to compete with Broadcom and STMicroelectronics.
However, Clemmer has now said that those TV companies were not making money.