HYPERtext linking technology and communications

Text 100 and NXP rev up the semiconductor industry

Situation Analysis

At the start of 2006, Philips Semiconductors had a low profile and an uncertain future. Parent company, Philips Group, had announced its intention to spin-off or sell the business, reducing media interest in the company. To bolster media share, the PR team launched a global campaign focused on several “hero” products, which culminated in the high-profile launch of Philips Semiconductors as a new, vibrant, independent company—NXP Semiconductors—whose business history and financial stability positioned it well for growth and success.

Execution

To demonstrate the company’s vision and business strategy, the PR team crafted a communications strategy demonstrating leadership in fast-growth fashion markets such as digital TV, contactless payment systems and next generation cell phones. A handful of technologies that typified Philips Semiconductors’ vision and specifically demonstrated technical innovation were selected as “hero” products. These were:

• TV-on-Mobile (Philips technology allows users to view live TV programs on a mobile phone)
• Next Generation Digital TV (Philips chips are integral to lifelike images on digital TV products)
• Near Field Communication (Philips chips enable secure contactless transactions to be made using their phones instead of credit or cash cards)

These hero technologies provided the focus for all global communications and activity spanning news, trials and events. This strategy enabled the team to clearly highlight the value of the business unit’s assets and paved the way for its emergence as an independent semiconductor powerhouse.

On 1st September 2006 NXP Semiconductors was born out of Philips Semiconductors as an independent company. The global communications team planned media, customer and employee events worldwide, with high-profile media activity scheduled in Europe, North America and Asia to ensure the launch reverberated around the globe. In total, 11.6 million viewers and listeners witnessed CEO Frans van Houten announce the new brand and its core values. Additionally, more than 335 journalists and analysts around the world had been briefed through a combination of nearly 100 one-to-one interviews and seven regional press events.

Evaluation

Media results following the global company launch positioned NXP as more competitive than ever before, with high-profile publications acknowledging its newfound independence would allow NXP to grow and emerge as a stronger player. In addition, 90 percent of articles were positive and 75 percent of coverage was headline coverage (Source: CARMA). A global perception audit following the launch showed a dramatic shift in perceptions versus the year before with 25 percent of all editors and analysts reporting an improvement in their opinion of the company.