NXP Semiconductors (formerly Philips Semiconductors) announced a redesign program. The program includes major reduction of NXP’s manufacturing base, its central R&D, and support functions. This program is expected to affect approximately 4,500 people globally and will result in annualized savings of USD 550 million. The restructuring cost will result in an estimated cash out of USD 800 million. NXP will focus on its Automotive, Identification, Home, and MultiMarket businesses.

The company plans to consolidate the majority of its production to two higher capability European fabs: Nijmegen and Hamburg, and to SSMC in Singapore. As a result four factories are planned to be sold or closed. The fab in Fishkill, New York, USA will be closed ultimately in 2009. Additionally, two other factories are planned to be closed by 2010: the “ICN5” part of the NXP facility in Nijmegen, Netherlands, and part of the “ICH” fab of the Hamburg facility, Germany. NXP's fab in Caen, France will be put on the market for sale. Headquartered in Europe, the company has 31,000 employees working in more than 20 countries and posted a pro forma sales of USD 4.8 billion (excluding the transferred wireless business) in 2007.