April 22, 2004 – Royal Philips Electronics NV, Amsterdam, The Netherlands, said revenues in its chip operations rose to 1.3 billion euros ($1.6 billion) resulting in a net income of 75 million euros ($89 million), compared with sales of 1.13 billion euros and a net loss of 178 million euros a year ago. Utilization rates increased from 84% in 4Q03 to 90%. The company projects a “mid-single digit” sequential increase in chip revenues for 2Q04.

Capital expenditures for the semiconductor business were 163 million euros, including 57 million euros for Systems on Silicon Manufacturing (SSMC), its Singapore JV with TSMC. Philips also invested 22 million euros in the Crolles 2 facility, its JV with Motorola and STMicroelectronics.

Also, CFO Jan Hommen said that Philips is not planning to reduce its 19.1% stake in TSMC, which was reduced in 2003 from 21.5%, according to Dow Jones, but a decision has not been made whether to take public its LCD JV with South Korea’s LG Electronics this year.