Philips sells major stake in semiconductor unit for $6.4 billion

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Philips sells major stake in semiconductor unit for $6.4 billion [Copy link]

Xinhuanet Brussels, August 3rd - Electronics giant Philips Electronics announced on the 3rd that it has agreed to sell 80.1% of its semiconductor division to a private investment consortium for 6.4 billion euros.

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Philips said in a statement that day that the private investment consortium is composed of two US private equity groups and a Dutch investment company. Philips itself holds the remaining 19.9% of the semiconductor division's shares.

Philips CEO Carlos Kazan said: "The semiconductor division will be able to seize opportunities and develop its potential as an independent company in the future. We are very happy to have found a partner who shares our beliefs."

Philips has always been well-known in the industry for the production of consumer electronics products. Koziler said that after selling the semiconductor division, Philips will focus on its core healthcare and consumer electronics businesses.

Philips announced in June this year that it would reduce or sell most of its semiconductor business within the year. This asset sale means that the company will basically abandon its chip business. (End)