NXP Semiconductors (formerly Philips Semiconductors) has increased its holding in Singapore-based Systems on Silicon Manufacturing Co. Pte. Ltd. (SSMC) from 50.5 percent to 61.2 percent, for a purchase price of approximately $113 M. Concurrently, NXP's joint venture partner in SSMC, the Taiwan Semiconductor Manufacturing Company Ltd. (TSMC), has increased its holding in SSMC to 38.8 percent. Both partner companies are purchasing these shares from EDB Investments Pte. Ltd. (EDBI), an entity of the Economic Development Board (EDB)of Singapore.

SSMC is recognized as a leading manufacturer of CMOS-based semiconductors, using process technologies to make wafers with line widths down to 140 nanometres, and boasts one of the larger eight-inch CMOS wafer fabs in the industry. NXP uses SSMC to augment its fully owned eight-inch wafer CMOS capability, and also to jointly develop and share technological advances with TSMC.

“In just over five years SSMC has become the most sought after provider of CMOS foundry services, offering flexible and cost-effective semiconductor fabrication solutions. As such the company has been hugely successful and is financially very sound,” said Frans van Houten, president and CEO, NXP Semiconductors. “SSMC's excellent business performance makes them a very attractive investment. In addition, SSMC continues to be an ideal production partner for NXP. Buying EDBI shares will not change our collaboration with EDB going forward. EDB has been a very significant partner in supporting us for infrastructure cost and efficiency, and we remain committed to working together.”