NXP Semiconductors, the independent semiconductor company founded by Philips, is consolidating its manufacturing operations in Europe.

In order to do so the company will close its manufacturing facility in Boeblingen, Germany, by the end of 2007, with the majority of the production load being transferred to its factories in Nijmegen and Hamburg. The move reflects the company’s ‘Business Renewal’ strategy, which focuses on enhancing the company’s competitiveness, operational effectiveness and profitability.

The decision was taken against the backdrop of a low production load, which was reduced by an additional 30 percent as a result of the recent withdrawal of the company from two underperforming businesses.

The transfer of production to Nijmegen and Hamburg will assure continuity of supply to customers, reduce the European cost base, and raise the overall productivity and efficiency by further improving the economy of scale within these two sites.

The German NXP organization will continue to be an important hub in NXP's global operations with innovation centers in Hamburg, Nuremberg and Dresden contributing to the international research and development activities. Hamburg, the headquarters of the German operations with more than 2400 employees, is also the strategic center of the company's automotive, identification and standard-application discretes activities.