NXP raises stake in SSMC

NXP Semiconductors has increased its holding in Systems on Silicon Manufacturing Co. Pte Ltd (SSMC) of Singapore from 50.5 percent to 61.2 percent. The transaction was worth about $113 million.

Concurrently, NXP's JV partner in SSMC, Taiwan Semiconductor Manufacturing Co. Ltd (TSMC) increased its holding in SSMC to 38.8 percent. Both NXP and TSMC have purchased the shares from EDB Investments Pte Ltd, an entity of the Economic Development Board of Singapore.

"SSMC's excellent business performance makes them a very attractive investment," said Frans van Houten, president and CEO of NXP. "In addition, SSMC continues to be an ideal production partner for NXP."

SSMC manufactures CMOS-based semiconductors using process technologies to make wafers with line widths down to 140nm. It boasts one of the larger 8-inch CMOS wafer fabs in the industry.

NXP taps SSMC to augment its fully owned 8-inch wafer CMOS capability, and also to jointly develop and share technological advances with TSMC.