NXP to take bigger share of SSMC

Edited by the Electronicstalk editorial team Sep 28, 2006

NXP Semiconductors is to purchase the SSMC shares currently held by EDB Investments in the three months following completion of the separation of NXP from Royal Philips.

NXP Semiconductors has decided to purchase the SSMC (Systems on Silicon Manufacturing Co) shares currently held by EDB Investments in the three months following completion of the separation of NXP from Royal Philips.

SSMC is a manufacturing joint venture between Philips (50.5%), Taiwan Semiconductor Manufacturing Company (32%) and EDB Investments (17.5%) located in Singapore.

SSMC is recognised as a leading manufacturer of semiconductor technology.

The purchase price for the shares will be approximately USS185 million.

Pursuant to the SSMC shareholders agreement, TSMC has the right to acquire a pro rata portion of these shares.

In that case, NXP will acquire approximately 10.7% of SSMC at a purchase price of approximately US $113 million.

NXP expects to fund the purchase with cash on hand.

EDBI has confirmed it would sell its shares in SSMC at the price specified in the option agreement currently in place between Philips and EDBI, as long as the sale is completed by 31st December 2006.

"This is a significant transaction as it increases our shareholding in a great company with a good cash flow", said Frans van Houten, President and Chief Executive Officer, NXP Semiconductors.