Trident Microsystems and NXP Complete Transaction to Combine Set-top Box and Television Systems Business Lines

If revenue from the newly acquired business lines had been included, Trident estimates that it would have achieved revenue of approximately $500 million in calendar 2009, with approximately 60% attributable to television and 40% to set-top box sales. The combination of Trident‘s existing business with NXP‘s television systems and set-top box business lines now provides Trident, in which NXP has received a 60% share interest, with an extensive portfolio of consumer IP. This portfolio comprises over 2,000 granted and in-process patents including motion estimation/motion compensation and conditional access as well as advanced 45nm system-on-chip (SoC) technology. The complementary portfolio will enable Trident to offer an extensive range of innovative semiconductor solutions to the digital home entertainment market, which Trident estimates will reach $5 billion in 2010.

“Integrating NXP‘s set-top box and digital television business lines with Trident immediately delivers the size and economies of scale needed to lead this market, with the broad product portfolio, IP expertise and operational infrastructure to support growth,” said Sylvia Summers, chief executive officer, Trident Microsystems, Inc.

Both the digital TV and set-top box markets share a significant amount of intellectual property. Through this acquisition, Trident can further accelerate innovation by leveraging an expanded IP portfolio, SoC design expertise, competitive cost structure and deep relationships throughout the TV and set-top box OEM customer base and ecosystem. These attributes will enable Trident to extend its TV leadership position and become a strong challenger to the incumbent leaders in the set-top box business.

“The combination of Trident‘s DTV and NXP‘s STB and TV lines is an important milestone for both NXP and Trident and also for our customers,” said Rick Clemmer, president and chief executive officer, NXP Semiconductors. “Platforms in the digital home entertainment market are converging, and as a result, our customers value the tremendous innovation that is made possible by combining best-in-class IP for both TV and set-top box products under one roof.”

Trident has undertaken a strategy to expand its applicable markets. In 2009, Trident acquired select product lines from Micronas, designed to strengthen its position in the digital television market. With the acquisition of the NXP set-top box and television lines, Trident has delivered on its promise to enter the set-top box market and is committed to expanding on the strong foothold NXP has established with its customers to become a leader in set-top box.

NXP and Trident intend to now cooperate in the development of complementary end-to-end solutions in other selected high-growth technology areas, including NXP‘s silicon tuner product lines. Trident will be fabless and have access to state-of-the-art technology and manufacturing capacity from NXP‘s manufacturing facilities, as well as the partner foundries and subcontractors of both companies. As a result of the terms and conditions agreed between the parties, NXP will account for its investment in Trident under the equity method.

Sylvia Summers remains the CEO of Trident. Christos Lagomichos, former EVP of NXP‘s Home business unit, is president. Pete Mangan serves as executive vice president and chief financial officer, and Saeid Moshkelani will lead research and development as executive vice president.

Trident now employs approximately 1,700 people worldwide, across 12 countries. Through its network of centers of excellence in North America and Europe, and its extensive engineering resources worldwide, Trident is structured to continue its dedication to customer support for its television and set-top box customers.