Electronics Production | September 13, 2007

NXP builds plant in Austria

NXP Semiconductors will invest Euro 42 million in its Sound Solutions innovation and manufacturing activities in Vienna, Austria in 2007.
This investment will enable NXP to expand fully automated mass production of its rectangular speaker generation for mobile phones and develop more innovative products to strengthen its market position in a expanding sector that is predicted to be up to two billion units in 2008.

“Whilst personal music players have given people a soundtrack to their lives, speakers enable the experience to be shared. With more than two billion speakers shipped for mobile devices, NXP is firmly established as the market leader in this sector," commented Marc Cetto, Executive Vice President, NXP Mobile and Personal Business Unit. “Currently, nearly 40% of mobile phones can play MP3 music and high profile music phones coming to market will increase the demand for high performing mini sound systems. The market will also be driven by traditional applications such as hands-free listening and polyphonic ring tones as well powering portable sound accessories that allow people to enjoy the quality of great music."

The investment of Euro 42 million, which is part of NXP's planned capital expenditure program, will help meet increased demand; NXP sales are predicted to increase to some 550 million sound components in 2007, an annual increase of over 50 percent, and the company aims to create over one billion units by 2010.

NXP's decision to locate its expanding Sound Solutions Production Line in Vienna is based on decades of local expertise in acoustic solutions, innovation in products and processes and the ability to quickly respond to customer needs. NXP continues to use its European operations to develop innovative products that are competitively priced against competition from Asia and in line with consumer demands.


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