Philips 2004 Annual Report Download - page 42

FEI Company is a US-based company in which Philips holds 26% of
the outstanding shares. FEI is the leading supplier of Structural
Process Management TM solutions to the world’s technology
leaders in the fields of semiconductors, data storage and biological
structures.
Taiwan Semiconductor Manufacturing Company Limited (TSMC)
is the world’s largest dedicated semiconductor foundry, providing
the industry’s leading process technology and the foundry
industry’s largest portfolio of process-proven library, IP, design
tools and reference flows. TSMC, in which Philips holds
approximately 19% of the outstanding shares, operates two
advanced 300 mm wafer fabs, five 8-inch wafer fabs, and one 6-inch
wafer fab. TSMC also has substantial capacity commitments at its
wholly owned subsidiary, WaferTech, and its venture fab, SSMC.
The company’s manufacturing capacity is currently about 4.3
million wafers, while its revenues represent some 60% of the
global foundry market. In 2002, TSMC became the first
semiconductor foundry to enter the top ten IC companies in
terms of worldwide sales. The principal reasons for Philips’ holding
an interest in TSMC are to secure a strategic supply of wafers, to
share and exchange technology and manufacturing knowledge, and
to share the risk of capital expenditures.
NAVTEQ Corporation is a leading provider of comprehensive
digital map information for automotive navigation systems, mobile
navigation devices and internet-based mapping applications.
NAVTEQ’s database – the company’s principal product – is a
highly accurate and detailed representation of road transportation
networks in the United States, Canada, Western Europe and other
regions.
In August 2004, NAVTEQ completed its initial public offering, in
which Philips participated as a selling shareholder. Following the
IPO, Philips’ interest in NAVTEQ decreased from 83.5% to 34.8%
and, as a result, was no longer consolidated as from August 2004
onwards. Pursuant to a pre-existing arrangement between Philips
and NavPart I B.V. (a consortium of six participating companies),
Philips exercised its right to purchase 2.6 million shares, which will
increase its holding in NAVTEQ to an aggregate of 37.7% upon
settlement of the purchase.
Atos Origin is an international information technology (IT)
services company. Its business is turning client vision into results
through the applications of consulting, systems integration and
managed operations, employing 45,000 people in 50 countries.
Following the takeover of Schlumberger Sema in 2004, Philips’
stake in the company decreased from 44.7% to 31.9%, and a
dilution gain of EUR 156 million was recorded in January 2004. In
December 2004, Philips sold 11 million shares in Atos Origin. The
transaction reduced Philips’ stake in the company to 15.4% and
resulted in a non-taxable gain of EUR 151 million in the fourth
quarter of 2004.
By year-end 2004 the Corporate Venturing portfolio comprised
some 10 companies in which Philips has a minority stake. Where
appropriate, new equity interests in ventures are now negotiated
exclusively as part of a broader partnership arrangement between
Philips business units and emerging technology companies.
Ownership of these minority stakes lies with the respective
product divisions.
41Philips Annual Report 2004