Huawei and NXP to Jointly Explore the Industry 4.0 Market

HANOVER, Germany, March 19, 2015 (GLOBE NEWSWIRE) -- Huawei Technologies Co., Ltd. and NXP Semiconductors N.V. (Nasdaq:NXPI) decided to jointly explore the Chinese and global Industry 4.0 market at the Industry 4.0 Roundtable held at Hanover CeBIT 2015 (Hanover Consumer Electronics, Information and Communication Expo). Through technical cooperation and joint innovation, the two companies will create an open, robust and secure Industry 4.0 Information and Communication Technology platform. The joint decision marks a milestone in the partnership between the two companies.

Led by smart manufacturing, Industry 4.0 is regarded as the fourth industrial revolution, following the steam, electricity, and information eras. It will apply ICT technologies and the Cyber-Physical System (CPS) to make smart manufacturing a reality. Industry 4.0 will connect human, information to physical objects, and connect all machines to a unified smart network. The technology is expected to automatically adjust production processes and speeds and fix faults, thus minimizing manufacturing costs.

IHS predicts that, by 2025, Industry 4.0 will connect over 80 billion devices to the Internet. China plans to invest EUR1.2 trillion over the next three years in modernizing and transforming the nation's industry, with the aim of shifting from "A big manufacturing country" to "A powerful manufacturing country".

Leading global ICT solutions provider Huawei and NXP, a high-performance, mixed-signal semiconductor solutions provider, have entered a strategic partnership to further expand their business in the Chinese and global Industry 4.0 market. Huawei offers a wide range of ICT products and solutions in the Industry 4.0 field. For industrial IoT connectivity, Huawei applies LTE-M technology and the industrial Ethernet gateway to deliver the core value of Industry 4.0, which includes IoT connections, security, and device management and operations. Huawei provides customers with key applications such as automated production, energy utilization optimization, parts management, real-time fault diagnosis, and on-demand production.

Huawei and NXP will collaborate in the following areas: physical layer, network layer, and cyber security. The partnership will fully integrate Huawei's ICT infrastructure and connectivity solutions and NXP's secure connectivity solutions for Industry 4.0. Collaboration will focus on Industry 4.0 applications, such as factory automation, logistics 4.0, wireless secure connections, and sensor networks. The two companies will develop a global leading Industry 4.0 networking solution that creates sustainable value for customers in Greater China region and potentially across the globe.

Patrick Zhang, the president of Huawei Marketing and Solutions, remarked that ICT infrastructure remains Huawei's long-term business focus. Huawei's Industry 4.0 IoT platform, with LTE-M and IoT gateway as the core, focuses on delivering core value such as security and device management and operations. The ability to create value depends on the underlying chipsets, modules, and Lite OS. NXP, as Huawei's partner in chipset and secure connectivity solutions, will help both sides expand their Industry 4.0 business in the Chinese and global markets.

Li Zheng, Senior Vice President of NXP and China CEO, commented that, "NXP Semiconductors advocates secure connectivity solutions for Industry 4.0. By deeply collaborating with Huawei, we're able to offer industry-leading Industry 4.0 networking solutions and create sustainable value for customers."

About Huawei

Huawei is a leading global information and communications technology (ICT) solutions provider. Our aim is to enrich life and improve efficiency through a better connected world, acting as a responsible corporate citizen, innovative enabler for the information society, and collaborative contributor to the industry. Driven by customer-centric innovation and open partnerships, Huawei has established an end-to-end ICT solutions portfolio that gives customers competitive advantages in telecom and enterprise networks, devices and cloud computing. Huawei's 170,000 employees worldwide are committed to creating maximum value for telecom operators, enterprises and consumers. Our innovative ICT solutions, products and services are used in more than 170 countries and regions, serving over one-third of the world's population. Founded in 1987, Huawei is a private company fully owned by its employees.

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About NXP Semiconductors

NXP Semiconductors N.V. (Nasdaq:NXPI) creates solutions that enable secure connections for a smarter world. Building on its expertise in high-performance, mixed-signal electronics, NXP is driving innovation in the areas of connected cars, cyber security, portables & wearables, and the Internet of Things. NXP has operations in more than 25 countries, and posted a revenue of US$5.65 billion in 2014. Find out more at www.nxp.com.

Forward-looking statement

This document includes forward-looking statements which include statements regarding NXP's business strategy, financial condition, results of operations and market data, as well as other statements that are not historical facts. By their nature, forward-looking statements are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements. Except for any ongoing obligation to disclose material information as required by the United States federal securities laws, NXP does not have any intention or obligation to publicly update or revise any forward-looking statements after NXP distributes this document, whether to reflect any future events or circumstances or otherwise. For a discussion of potential risks and uncertainties, please refer to the risk factors listed in NXP's SEC filings. Copies of NXP's SEC filings are available from the SEC website, www.sec.gov.

CONTACT: NXP Semiconductors N.V.         Jannet Chen         Tel: +86-21-2205 5883         Fax: +86-21-2205 2518         Email: jannet.chen@nxp.com         Ogilvy Public Relations         Sharon Tang         Phone: +86-10-85206565         Fax: +86-10-85206600         Email: sharon.tang@ogilvy.com         Huawei         Guo Zhijun         Tel: +86-755-89247584         Fax: +86-755-89241409         Email:guozhijun@huawei.com