NXP Semiconductors plans to sell standard products business for at least $2 bn

NXP Semiconductors NV is planning to sell its standard products business after receiving interest from Chinese buyers, Bloomberg reported, citing sources familiar with the matter.

NXP, which this year acquired Texas-based Freescale Semiconductor for $11.8-billion, may seek at least $2 billion for the unit, which makes semiconductor parts used in consumer electronics, the report said.

NXP's standard products business has received interest from suitors including Beijing-based investment firm Jianguang Asset Management Co also known as JAC Capital, the report added.

A potential deal may come after NXP last year sold its RF Power business that are used primarily for manufacturing, research, and development of RF power amplifiers to Jianguang Asset Management for $1.8 billion.

These assets included a manufacturing facility in the Philippines, a building in the Netherlands to house management and some testing labs, as well as all patents and technologies used exclusively or predominantly for the RF power amplifier business, and a royalty-free license to use all other NXP patents and technologies required by that business.

The divestiture also included all of NXP's RF power amplifier employees and managers.

Eindhoven-based NXP is the world's fifth-largest non-memory semiconductor supplier, and a leading semiconductor supplier for the Secure Identification, Automotive and Digital Networking industries.

NXP, which was carved out of Dutch consumer electronics giant Philips, was sold to a consortium of private equity firms in 2006 and changed its name to NXP.

NXP, which holds more than 9,000 issued or pending patents, provides mixed signal and standard product solutions based on its security, identification, automotive, networking, RF, analog, and power management expertise.

The company employs around 45,000 people in more than 35 countries, and has annual revenue of $6.1 billion.