NXP Semiconductors to Sell Standard Products Unit for $2.75 Billion - Page 1
Forum section: electronics / general

author: Kjelt
author_rank: Super Contributor
timestamp: June 14, 2016, 07:13:38 am
content: Darn there go the jelly bean parts to the far east. Hopefully they stay the same price/quality perhaps even a bit lower on pricehttp://www.nasdaq.com/article/nxp-semiconductors-to-sell-standard-products-business-for-275-bln-20160613-01004

author: ataradov
author_rank: Super Contributor
timestamp: June 14, 2016, 07:42:08 am
content: That's good. They will focus on ARM MCUs. Their MCU portfolio is reasonable, but it is getting old and could use some updates.

author: coppice
author_rank: Super Contributor
timestamp: June 14, 2016, 07:57:58 am
content: It sounds like all the bits they are selling come from the old NXP and none from the old Freescale. Does this mean its only things like the mundane power MOSFETs they are selling off, and the RF ones (like the ones being promoted for solid state microwave ovens) will remain in NXP?

author: Jeroen3
author_rank: Super Contributor
timestamp: June 14, 2016, 08:03:18 am
content: They stripped down the mcu part years ago. They bought Freescale for the knowledge. Expect new freescale parts instead.Standard product are diodes, transtors and mosfets. There is no margin in those.If you use them, watch here:http://www.nxp.com/products/eol/

author: Kjelt
author_rank: Super Contributor
timestamp: June 14, 2016, 08:28:32 am
content: Quote from: Jeroen3 on June 14, 2016, 08:03:18 amI don't know exactly what the margin is but the revenue is quite substantial. Normally you sell your business for around 6x-10x the net year income, so that would be at least around $275 milllion/year about a 23% profit, pretty good I would say and I know a lot of companies that can dream about that.Quote

author: coppice
author_rank: Super Contributor
timestamp: June 14, 2016, 09:04:24 am
content: Never underestimate the potential profit from selling simple bits and pieces. Some companies get their profit from high value engineering. Others get their profit from aggressive cost control in manufacturing and distributing enormous numbers of components that stay in production for years. Large companies, like Vishay, have been built out of doing nothing adventurous, but doing relatively simple things very well.

author: onesixright
author_rank: Frequent Contributor
timestamp: June 14, 2016, 08:24:10 pm
content: To me this raises a deeper concern. Who checks these mcu's for backdoors? I don't wanna sound paranoid, but as a software developer I'm more and more concerned about security. While with software you can check this -up to a certain point- but what about h/w?Anyone has some experience in this field?

author: Jeroen3
author_rank: Super Contributor
timestamp: June 14, 2016, 09:03:19 pm
content: Nobody does. But you can ask the guys from the russian firmware extraction read company.There's a lot more behind the reserved bits than tou think there is. All NDA stuff though.Standards do provide little margin. But it's stable margin.

author: dannyf
author_rank: Super Contributor
timestamp: June 14, 2016, 10:11:58 pm
content: Those things are sold on cash flow aand I would imagine them to be fairly good in that department: I did the freescale buyout then.The move makes sense for nxp. They got freescale through debt. They want tto shed their non core and slow growth assets.To thee buyer it makes sense. They got a list of specs in designs, A great name, and a huge potential to lower production costs and to upsell to customers they had no access too before.

author: bitwelder
author_rank: Super Contributor
timestamp: June 15, 2016, 05:29:54 am
content: Quote from: onesixright on June 14, 2016, 08:24:10 pmWhen you get down to this level:https://www.wired.com/2016/06/demonically-clever-backdoor-hides-inside-computer-chipthere is very little that you can do (other than perhaps fuzz each sample and hope to catch a glitch), as you are even under the f/w layer.

author: Jeroen3
author_rank: Super Contributor
timestamp: June 18, 2016, 12:16:48 pm
content: I have to correct myself here.Nexperia will contain more than just diodes and fets, it also has the part that NXP made significant stable profit on, (custom) logic.It will cause NXP to lose fabs. And nexperia to lose nxp's labs. Strange move.The investors don't like it either:http://www.wolframalpha.com/input/?i=nxpi+from+2016-06-10+to+2016-06-18

author: Kjelt
author_rank: Super Contributor
timestamp: June 18, 2016, 12:49:03 pm
content: Quote from: Jeroen3 on June 18, 2016, 12:16:48 pmSimply put, dump the technology from the past, cash in and use it in a war reserve to aquire some other company OR invest in some future tech development.QuoteThat is too hasty conclusion, all the stock are going down due to the Brexit, Trump and other economic news, just wait and see what happens in the coming year, besides the nxp stock already lost 8% in 14 days before this news came out.

author: dannyf
author_rank: Super Contributor
timestamp: June 18, 2016, 01:27:20 pm
content: QuoteA proven way to move forward, just like buy-low-and-sell-high.

author: chickenHeadKnob
author_rank: Super Contributor
timestamp: June 18, 2016, 01:45:43 pm
content: I'm worried about my beloved IR fets. Bloody hell, International rectumfier to infineon to nxp to some china shop. My fets have gone on their walk-a-bout.Now even if they are real genuine premium price they still will be fakes