Huawei and NXP to Jointly Explore the Industry 4.0 Market

[Hannover, Germany, March 19, 2015] Huawei 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. 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 & 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.

Zheng Li, 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."