Eindhoven, the Netherlands, January 16, 2007 –NXP Semiconductors has announced it shall not extend its current cooperation in the Crolles2 Alliance beyond the initial term expiring at the end of 2007. NXP has decided to pursue a different path for its future development of process technology. A separate announcement on this topic will follow. NXP will work together with the Alliance partners in 2007 to complete the current program on 45nm CMOS and effectively manage the transition.

The Crolles2 Alliance was formed in 2000 and renewed in 2002 when Freescale (then Motorola) joined the existing alliance of STMicroelectronics and NXP (then Philips Semiconductors) to create and manufacture future-generation technologies and system-on-Chip solutions more quickly and more cost-effectively. The Alliance combined three of the world's leading industry players in semiconductor research and process and library development. TSMC joined the Alliance in 2001 as an associated partner.

The work done within the Crolles2 Alliance has contributed significantly to the member companies who have continually ranked in the global top 10 of semiconductor companies. Products in 120nm, 90nm and recently 65nm have been brought to market as a result of this cooperation.

About NXP

NXP is a top 10 semiconductor company founded by Philips more than 50 years ago. Headquartered in the Netherlands, the company has 37,000 employees working in 20 countries across the world. NXP creates semiconductors, system solutions and software that deliver better sensory experiences in mobile phones, personal media players, TVs, set-top boxes, identification applications, cars and a wide range of other electronic devices. News from NXP is located at www.nxp.com.