NXP consolidates manufacturing operations in Europe Production to move from Boeblingen to Nijmegen and Hamburg NXP Semiconductors, the independent semiconductor company founded by Philips, plans to close its manufacturing facility in Boeblingen, Germany by the end of 2007. Approximately 550 employees are affected by the closure. The majority of the production load will be transferred to NXP’s 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 move 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 2,400 employees, is also the strategic center of the company's Automotive, Identification and standard-application discretes activities. The Hamburg site produces more than one million wafers per year.

NXP is a top 10 semiconductor company founded by Philips more than 50 years ago. Headquartered in Europe, the company has 37,000 employees working in 26 countries across the world.