Restructuring programme

NXP Semiconductors is to sell or close four of its factories as part of a raft of restructuring measures.

According to NXP, the changes come in response to a challenging economic environment, the relative weakness of the US dollar and the reduction in size of the company after moving its wireless business into a joint venture with STMicroelectronics.

The restructuring programme includes a major reduction of NXP’s manufacturing base and its central R&D and support functions. This programme is expected to affect approximately 4,500 employees globally and is expected to result in annual savings of $550m (£314m).

NXP will now focus on its Automotive, Identification, Home and MultiMarket businesses, where it enjoys market leadership positions. The restructuring measures will establish NXP with a strong base to achieve its mid-term targets to deliver profitable growth with 15 per cent EBITA and positive cash flow.

Changes to the manufacturing operations include adopting more advanced production processes and reducing excess capacity in older technologies.