The Amsterdam-based, electronics giant Philips is prepping to reduce its ownership share in its Semiconductors division in the course of the second half of 2006 to a minority stake through an initial public offering of the company and/or sale of shares to financial investors, while continuing to evaluate industry consolidation opportunities.

In December 2005, the company announced that its Semiconductors division would be legally separated in order to generate value to Philips’ shareholders and to provide better ability to the division to achieve its business renewal objectives and become a stronger company. It seems like the Philips' camp is prepping for an all-out war with semiconductor giants like AMD and Intel.

In an e-mail from Philips’ President and CEO Mr. Gerard Kleisterlee, he mentioned that "the future deconsolidation of Semiconductors is a further step for Philips in moving away from a focus on high volume electronics and implementing a strategy to build a Healthcare, Lifestyle and Technology company with a strong market focus around the brand promise of Sense and Simplicity." In English, they are widening their horizons and trying to branch out to other fields.

The new semiconductors company will continue its business renewal strategy as well as consider additional measures to strengthen its portfolio in Mobile & Personal, Home, Automotive & Identification and Multi Market Semiconductors. The new company's name will be announced in the coming months and preparations for a separate stock exchange listing have started. With that, let the semiconductors showdown begin.