AMSTERDAM, The Netherlands-Royal Philips Electronics will dissolve the Sunnyvale, Calif.-based Philips Components division and restructure the business in its other divisions to reduce costs and simplify its organization.
Philips plans to combine its telecom speaker activity with Mobile Display Systems (MDS) and move it to Philips Semiconductors, creating one source for solutions for the telecom and personal digital assistant markets. Philips will also align certain digital display and wireless connectivity activities under the Philips Consumer Electronics group.
In addition, a new business initiative group will be formed to focus on new display opportunities, including Liquid Crystal on Silicon (LcoS) technology.
The company said restructuring options, focused on returning to profitability, will also be announced within eight weeks for Philips Optical Storage.
Also, in an attempt to focus on digital technologies over older analog businesses, Philips will transfer a number of businesses to its Corporate Investments group for potential sale or merger.
Matt Medeiros, current chief executive officer of Philips Components, will leave the company and Theo van Deursen, based in Eindhoven, The Netherlands, will lead the transition process.
Philips said the overall plan will be implemented as of Jan. 1, 2003, and will cost the company almost $173 million in the fourth quarter.
