Thursday, October 2, 2008

Freescale Sharpens its Focus -- Considers Sales of Cellular Chipset Business

Freescale Semiconductor will sharpen its strategic focus on automotive and networking markets, where it is a leading supplier of automotive microcontrollers, communication processors and radio frequency (RF) integrated circuits (ICs) technology. It will also increase its efforts and investments in the industrial and consumer markets that utilize Freescale's microcontrollers, microprocessors, application-specific processors, analog, power and sensor ICs.

Freescale also said it will explore strategic options for its cellular handset chipset products business. The company intends to complete a sale, joint venture agreement or other transformation in the coming months. The company's cellular handset products business includes baseband processors, RF transceivers, power management/audio, software and platforms for the cellular handset market.

The company also announced it has updated its arrangement with Motorola whereby Motorola agreed to provide certain consideration in exchange for eliminating their remaining minimum purchase commitments.