Fable: The Cock-Up

Once upon a time the 3rd largest wireless chip company bought the fourth largest wireless chip company for $1.64 billion forming a company with revenues of $3 billion.

The combined company formed a jv with a third wireless chip company which resulted in an organisation with 6,700 employees of whom 85% worked in R&D in centres spread across eleven countries.

It had good design but lacked access to leading edge process technology.

Four years after founding the jv, the company was shuttered.

Moral: “Innovation has nothing to do with how many R&D dollars you have” (Steve Jobs).

 

 

 

 


Comments

5 comments

  1. Yes indeed he did get sacked after this masterly coup, nxpsucks, but a few months later he bagged the big one – boss of Philips – where he seems to have done pretty well.

  2. That deal saved NXP. Frans somewhat fixed his earlier mistake but only to get fired 3 month later.

  3. Spot on DontAgree, Frans van Houten cut a master deal for NXP with ST.

  4. I think only NXP made money on that deal/debacle …

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