PHILPS global CEO Kleisterlee denied sell semiconductor business

"Although some multinational companies sold its semiconductor business, but PHILPS will not." PHILPS Electronics Co., CEO global Kleisterlee yesterday on the "First Financial Daily" said.

The British Financial Times reported that the day before yesterday quoted the words of Ke Ke said that if the semiconductor sector performance failed to achieve the desired goal, PHILPS may sell this business. And said the company plans to assess the prospects for the development of the semiconductor sector in the second half of next year.

PHILPS's three core business is the medical system, lifestyle and core technology, which has been the semiconductor sector as the core of PHILPS division. "We invest more than 300 million euros per year in the core business unit." Kleisterlee said, "PHILPS also has its own innovative exit mechanism, if we do well, we will consider directly off, if the technology or departments have lost market in foreign countries, but also beneficial to PHILPS, will take back to the headquarters of the means; if the department or technology although successful, but for PHILPS itself can not bring real profits, we will consider the spin off or sell. However, the semiconductor division is not our burden."

The global survey agency iSuppli data forecast, PHILPS semiconductor sector operating gross margin of about 2% this year, far below the company's minimum target of 5%. In fact, under such pressure, SIEMENS, HP, Motorola and other industry giants have long been stripped of the semiconductor division.

And Co Thretala, the medical system is becoming the core business of PHILPS group. At present, this business has accounted for 20% of total revenue. By 2008, our goal is to occupy 1/3." He said.

Reporters learned that PHILPS has several times to sell its shares in TSMC, recently it began to sell its joint venture with LG panel plant, to invest in other high growth areas such as health care.