PHILPS spin off semiconductor sector to consider merging with other companies

EST on December 15th (Beijing time December 16th) according to the latest report of foreign said, Europe's largest consumer electronics maker PHILPS said on Thursday that the company currently has plans through legal channels to spin off company semiconductor division. Industry analysts predict that PHILPS's move will be a prelude to the sale or merger with other companies in the semiconductor sector.

In the past 10 years, industry analysts have been whether PHILPS should split the semiconductor business or just as the supplier of PHILPS's unilateral dispute over. PHILPS semiconductor division in 2004 revenues of 5 billion 500 million euros ($6 billion 600 million), profit of about 450 million euros (about $540 million). If the department becomes an independent company, the company will be able to enter the ranks of the world's top 10 semiconductor manufacturers. Petercam investment company market analyst Eric Graf predicts that the market value of PHILPS's semiconductor business will be between 4 billion euros --60 billion euros (equivalent to $4 billion 800 million --72 billion).

PHILPS on Thursday did not disclose the semiconductor business is being acquired by others will build alliances with other chip manufacturers. However, the company has made it clear that the structural adjustment of the semiconductor business is That's final. PHILPS semiconductor business CEO haodon million forecast, the next 5 years the global semiconductor industry will set off a wave of consolidation. Marriott London said, PHILPS will keep pace with the times, but not conservative. 000 haodon revealed that PHILPS currently has several semiconductor business opportunities, but he will be on PHILPS and to indicate its semiconductor business measures.

Marriott London said, PHILPS split the semiconductor business is not in order to gain more market share, not in order to survive in the fierce competition in the market. PHILPS semiconductor business is currently not a lack of scale, the semiconductor business will be adjusted to allow the business to get more opportunities to get more market share. It is reported that PHILPS to complete the work of writing a spin off semiconductor business will be completed in the second half of 2006.