October 10, 2002, 9:34 AM — Dutch Koninklijke Philips Electronics NV will shut its Sunnyvale, California, components division. Most of the activities will be moved to other Philips units, while some smaller parts will be divested, the company announced Wednesday.
A new home has been found for Philips Components' telecom speaker and mobile display business, which will become part of Philips Semiconductors. Other digital display and wireless connectivity activities, including the digital remote control unit, will move to Philips Consumer Electronics, Philips of Amsterdam said in a statement.
Uncertainty remains about Philips Optical Storage, which makes DVD+RW drives, among other storage products, and has been hit hard by the slump in PC sales. Philips will present a final plan for the restructuring of this part of Philips Components in eight weeks, it said.
Philips Optical Storage, at least for now, will not become part of another business unit; it will appear in the miscellaneous section of Philips' financial report from the first quarter of 2003. A new group focused on emerging display technologies, such as liquid crystal on silicon (LCoS) will also be kept separate, Philips said.
Furthermore, Philips is looking to either sell off, or form partnerships to manage, parts of Philips Components that focus on mature technologies such as speakers and analogue remote controls, a spokesman said. These parts of Philips Components account for about