Philips sells controlling stake in semiconductor wafer maker
By Colleen Taylor, Contributing Editor -- EDN, July 2, 2007
Continuing its quest to streamline its operations and refocus its brand, Dutch technology giant Royal Philips Electronics Friday announced it has sold its controlling stake in Ommic S.A.S. to France-based financial services conglomerate Financière Victoire SAS of France for an undisclosed amount.
Ommic develops and manufactures semiconductor wafers based on gallium arsenide technology for specific applications such as wireless telecoms infrastructure, optical networks and automotive mobile TV. Ommic, which employs approximately 75 people, is part of Philips' corporate investments portfolio, and will remain based in Paris, subject to French law and governance, Philips said.
The sale closed Friday.
This is not the first of Philips' moves outside of the semiconductor realm. Last year, the company spun off its semiconductor segment, selling an 80.1 percent stake of the business to a private equity consortium; the now-standalone business now operates under the name NXP Semiconductor. Then, in March, Philips announced its plans to further distance itself from the semiconductor market by selling off its shares in the industry's top foundry, Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC). That month, Philips sold 887 million shares of TSMC common stock to long-term financial investors in Taiwan in a $1.7 billion deal; in May, Philips sold 240 million shares of TSMC stock for about $2.5 billion.
The company said in a statement issued Friday that the Ommic sale represents another step Philips is taking to focus on its "healthcare, lifestyle and technology activities."
