NXP partners with Reliance for low-cost handsets

May 21, 2007 11:21 IST

NXP (Next eXPerience) Semiconductors, the new semiconductor company founded by Philips, is partnering with mobile communication service provider Reliance Communications to bring out low cost handsets in India, considered one of the fastest growing markets for cellular phones in the world.

"We had discussions with a Reliance team on Wednesday. We are working out the partnership. These low cost handsets will be powered by NXP chipsets. The product announcement will be made by Reliance shortly," NXP Semiconductors President &

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CEO Frans van Houten told reporters here.

The price of the handset could be around Rs 800 ($20) and it has features such as colour display, MP3 player and FM radio. "Bringing the price down alone is not sufficient. The handset should combine cost effectiveness, media entertainment and battery life," he added.

In order to better serve markets like India, NXP acquired Silicon Labs' cellular business earlier this year. The acquisition gave NXP the single chip capability.

BS Reporter in Bangalore

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