BANGALORE: NXP Semiconductors (India) Pvt. Ltd., formerly Philips Semiconductors (India) Pvt. Ltd., will invest Euro 255 million as it starts functioning as a new company, after moving out of the fold of Philips on being acquired globally by five private equity investors in August.

Out of the investment, Euro 5 million would be spent this year and early next year on setting up a state-of-the-art new campus here, while the balance (Euro 250 million) would be spent on R&D and sales over years, Rajeev Mehtani, Managing Director, NXP Semiconductors India told reporters here on Monday.

Bangalore-headquartered NXP Semiconductors India is being carved out of the semiconductor business of Philips in India and its semiconductor vertical in the Innovation Campus here.

The new entity will become operational in the first week of October with 700 people, out of which 650 will be R&D engineers.

The semiconductor business of Philips clocked revenues of Euro 4.77 billion in 2005.

"We are going to beat the market place by 2-3 per cent in growth in 2006.

"The Asia-Pacific region accounted for 66 per cent of the revenues of Philips Semiconductors in 2005,'' Mr. Mehtani said, adding that India was growing much faster in terms of growth rates in the APAC region. NXP Semiconductors India will work on chip design and embedded software and systems and intensify its software partnership programmes for its Nexperia home and mobile platforms.

Royal Philips had sold a controlling stake of 80.10 per cent in its semiconductor business to Kohlberg Kravis Roberts & Co, Bain Capital, Silver Lake Partners, Apax Partners and AlpInvest Partners NV for Euro 8.3 billion in August.

K. Ramachandran, CEO, Philips Electronics India Limited. said the top line of Philips in 2006 would drop by one-fourth of the total revenues of its semiconductor business, being its volumes for one quarter.

Philips Electronics India was expected to announce soon plans to grow its lifestyle and healthcare business, Mr. Ramachandran said.

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