French technology and media services company Thomson SA and privately held Dutch chip maker NXP Semiconductors BV said Friday that they signed an agreement to create a joint venture combining their can-tuner module operations.
The agreement comes after an announcement in February of a memorandum of understanding between the companies regarding such a joint venture.
Can tuners are used in TV sets to improve picture quality, among other applications.
NXP will have a 55 percent stake in the joint venture, while Thomson will have 45 percent.
About 4,000 employees will be part of the joint venture, most of whom are staff from the companies' manufacturing operations in Indonesia.
The venture's chief executive will be Pieter Pauman, who is being assigned by NXP, and the chief financial officer will be Philippe Nau, who is being named by Thomson.
The companies' can-tuner operations had combined sales of more than $250 million in 2007.
The companies anticipate the transaction will be completed in the third quarter of 2008.
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