Telecommunications     2007-09-17

NXP Invests Euro 42 Million in European Mobile Speaker Facility

NXP Semiconductors, the independent semiconductor company founded by Philips, today announced it will invest Euro 42 million in its Sound Solutions innovation and manufacturing activities in Vienna , Austria in 2007. This investment will enable NXP to expand fully automated mass production of its unique rectangular speaker generation for mobile phones and develop more innovative products to strengthen its market leadership position in a rapidly expanding sector that is predicted to be up to two billion units in 2008.

“Whilst personal music players have given people a soundtrack to their lives, speakers enable the experience to be shared. With more than two billion speakers shipped for mobile devices, NXP is firmly established as the market leader in this sector,” commented Marc Cetto, Executive Vice President, NXP Mobile and Personal Business Unit. “Already nearly 40% of the mobile phones can play MP3 music and high profile music phones coming to market will increase the demand for high performing mini sound systems. The market will also be driven by traditional applications such as hands-free listening and polyphonic ring tones as well powering portable sound accessories that allow people to enjoy the quality of great music.”

Nearly one in three phones sold incorporates an NXP speaker system. The investment of Euro 42 million, which is part of NXP’s planned capital expenditure program, will help meet increased demand; NXP sales are predicted to increase to some 550 million sound components in 2007, an annual increase of over 50 percent, and the company aims to create over one billion units by 2010.

NXP shows clear innovation in the product development in the latest pocket sized rectangular speakers (10 x 4.8 x 2 mm) which are among the smallest loudspeakers worldwide for mobile phones and portable music players. In addition to the development of ever smaller mobile phone loudspeakers, a 50 strong R&D team is developing innovative solutions for entertainment electronics such as mini-headphones and sound panels with hi-fi sound quality. With the development of microphones based on MEMS (Micro-Electro-Mechanical-System) technology, sound capabilities in semiconductor technology are also being extended.

NXP’s decision to headquarter its expanding Sound Solutions Business Line in Vienna is based on decades of local expertise in acoustic solutions, innovation in products and processes and the ability to quickly respond to customer needs. NXP continues to use its European operations to develop innovative products that are competitively priced against competition from Asia and in line with consumer demands.

Headquartered in Vienna and with a subsidiary in Beijing , NXP’s Sound Solutions Business Line employs over 1000 people, of whom 450 are in Vienna .

For further information please visit www.NXP.com