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Freescale mulls options for mobile chip biz

Posted: 29 Sep 2008 ?? ?Print Version ?Bookmark and Share

Keywords:mobile chip? Freescale plan? business partner?

In an interview with Financial Times Deutschland, Freescale Semiconductor CEO Rich Beyer disclosed he is considering several options regarding its ailing mobile chip business.

The company currently considers three alternatives: Search for a partner, sell the mobile radio chip business, or continue to run the activities alone. Freescale is in talks to several potential partners, Beyer said, but declined to specify a timeline.

The Freescale top executive also declined to say if a partnership with equally loss-making competitor Infineon Technologies is seen as a possibility. However, rumors over negotiations between both companies have been spread by the media at several recent opportunities.

Besides writing losses, Freescale also suffers from a mountain of debt. For this reason, cost-cutting is a predominant topic in the company. Beyer said he does not intend to cut on R&D costs. However, he plans to use the resources more effectivelyfor instance by improving business processes and by focusing to core topics and markets. "It becomes more and more important to show significant presence in dedicated market segments", he explained.

With respect to the DRAM market situation, Beyer said "every morning when I wake up I am happy we are not in the memory chip business."

- Christoph Hammerschmidt
EE Times Europe

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