News Article
Philips Dissolves Components
Philips Electronics is to dissolve its Components division. Telecom speaker activity will be combined with Mobile Display Systems (MDS) and moved to Philips Semiconductors, offering a single source for the telecom and PDA markets.
Digital display and wireless activities will move to Philips Consumer Electronics. A stand-alone business initiative group will be formed to focus on new high-growth display opportunities, including liquid crystal on silicon (LCoS) technology.
The company also plans to bring its Optical Storage business back to profitability with a redesigned business model. Among its tasks is to push the DVD+RW standard.
Philips' portfolio will focus on digital technologies and de-emphasize more mature analogue businesses. A small number of businesses with a combined annual turnover of approximately EUR400mn will be transferred to the Corporate Investments group for potential sale or merger.
With these changes, a divisional structure for Components is not required, says Philips. The organisation will be discontinued, including its headquarters in the USA.
