NXP Semiconductors to Sell Standard Products Unit for $2.75 Billion

NXP Semiconductors NV, which last year merged with Freescale Semiconductor, is selling its standard products business to a group of Chinese investors for $2.75 billion, furthering that country?s efforts to acquire chip assets and reduce imports.

Ian King Elco,Van Groningen-BloombergTechnology, Jun. 13, 2016 – 

NXP Semiconductors NV, which last year merged with Freescale Semiconductor, is selling its standard products business to a group of Chinese investors for $2.75 billion, furthering that country's efforts to acquire chip assets and reduce imports.

China's Beijing Jianguang Asset Management Co. and Wise Road Capital Ltd. will be the new owners of the business, NXP said in a statement on its website. The unit, which had revenue of $1.2 billion in 2015, will transfer about 11,000 NXP employees to a new company that will be called Nexperia.

The world's most populous nation is seeking to buy up semiconductor capabilities to strengthen its domestic industry and replace imports that have sucked almost as much cash out of the country as oil purchases. China's push to acquire overseas expertise has faced obstacles as government regulators in the U.S. have expressed concern about the transfer of technology that could be used by the military.

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