Philips sells semiconductor and medical chip unit to Dutch consortium

Philips has sold a division that develops specific chips for the semiconductor and medical industries to a Dutch consortium of private investors. The consortium includes former VDL Nedcar CEO John van Soerland and businessman Cees Meeuwis.

The unit, which will operate independently under the name Xiver, focuses on micro-electromechanical systems (MEMS). These systems are used in sensors for airbags, infrared detectors, catheters, and other medical diagnostic equipment. Xiver will also supply components to semiconductor equipment maker ASML.

The financial details of the deal have not been disclosed, but all 110 employees will retain their jobs under the new ownership. Van Soerland will lead Xiver as its new CEO. The company’s leadership sees significant potential in the MEMS market, particularly as Xiver is described as the only independent MEMS chip manufacturer in Europe not under Chinese ownership.

“There's a strong possibility that companies in our niche market would prefer to do business with independent players on this side of the world,” said Van Soerland. He added that Xiver’s separation from Philips could prove beneficial. “The processes that Philips developed for this unit are difficult to market externally. Competitors are less likely to shop at Philips,” he explained.

Xiver has already secured agreements with labor unions regarding employee conditions. The Dutch trade union FNV has praised the outcome. "The new management has engaged with the employees in a positive and dynamic way. This has visibly strengthened trust in the leadership," said FNV representative Patrick Meerts.