Philips announced his intention to reduce its ownership share in its Semiconductors division in the course of the second half of 2006 to a minority stake through an IPO of the company and/or sale of shares to financial investors, while continuing to evaluate industry consolidation opportunities. In December 2005 the company announced that the Semiconductors division would be legally separated in order to generate value to Philips’ shareholders and to provide better ability to the division to achieve its business renewal objectives and become a stronger company. The new semiconductors company will continue its business renewal strategy as well as consider additional measures to strengthen its portfolio in Mobile & Personal, Home, Automotive & Identification and Multi Market Semiconductors. Naming for the company will be announced in due course and preparations for a separate stock exchange listing have started.