Philips Semiconductors CEO Frans van Houten announced Friday the company will now be known as NXP, marking a milestone in its 53-year history as it becomes independent from Royal Philips. The name change announcement follows an agreement between Royal Philips and Kohlberg Kravis Roberts & Co. (KKR), Bain Capital, Silver Lake Partners, Apax and AlpInvest Partners NV that will see the consortium take an 80.1 percent stake in the semiconductor operation with Philips retaining a 19.9 percent interest.

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NXP CEO Frans van Houten on Friday unveiling the new name of the company formerly known as Philips Semiconductors. (Photo: Business Wire)

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NXP is Europe's second-largest semiconductor company. Speaking at the Internationale Funkausstellung (IFA) consumer electronics show in Berlin, van Houten said, "Today we take control of our own destiny and start to shape the future of the semiconductor industry. NXP stands for Next Experience. Put simply, we're enabling the next generation of consumer entertainment products." van Houten confirmed that NXP will continue its current business renewal strategy, which has been underway for 18 months and which is supported by its new shareholders. The strategy involves NXP driving for leadership in five markets: automotive, identification, home, mobile and personal, and multimarket semiconductors. A center dedicated to emerging technologies has been established within NXP with close to 600 scientists joining from Philips Research and Applied Technologies. NXP now has over 6700 engineers in research & development and will remain headquartered in Eindhoven, the Netherlands, the company said.