NXP Semiconductor said yesterday its acquisition of Freescale for $11.8 billion has propelled it to become the world's fourth biggest semiconductor firm and a market leader in the automotive electronics sector.
The takeover, which was approved by regulators including China's Ministry of Commerce, created a semiconductor firm boasting a combined revenue of over $10 billion annually. NXP's automotive electronics business is set to soar 40 percent as a result of the deal.
The new NXP will increase investment in China and deepen cooperation with domestic companies such as SMIC, Steve Owen, NXP's executive vice president, said yesterday in Shanghai.
The new firm will focus on secure connection, intelligent car, smart infrastructure and cloud computing, which are strategic sectors for China during the 13th Five-Year plan starting from 2016.
As previously announced, the transaction is expected to achieve cost savings of $200 million in 2016.
