To mark its independence from Royal Philips, Philips Semiconductors will move forward as NXP. The name change follows an agreement between Royal Philips and Kohlberg Kravis Roberts & Co. (KKR), Bain Capital, Silver Lake Partners, Apax and AlpInvest Partners NV that will see the consortium take an 80.1 percent stake in the semiconductor operation with Philips retaining a 19.9 percent interest. NXP is Europe’s second largest semiconductor company and a global top 10 player.

Explaining the origins of the name, Philips Semiconductors CEO Frans van Houten, said, “NXP stands for Next Experience. Put simply, we’re enabling the next generation of consumer entertainment products. In order to emphasize the rich heritage which NXP gained from 53 years as part of Royal Philips, the NXP name will be supported by the tagline founded by Philips.”

van Houten confirmed that NXP will continue its current business renewal strategy, which has been underway for 18 months and has contributed to sustained profitability and cost savings as a strong foundation for the future. The new shareholders support the continuation of the strategy of NXP, which is driving for leadership in five markets on which the company focuses: automotive, identification, home, mobile and personal, and multimarket semiconductors. This will be achieved through investment of €1 B in R&D, the asset light manufacturing strategy, a strong customer focus, the enormous talent base among its 37,000 employees and the continued Business Renewal Program.