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Freescale getting out of mobile market
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Citing the lack of scale to compete with rivals in a fast consolidating market, Freescale has announced plans to exit the mobile handset chip market to focus on automotive and networking chip markets instead. Rumors had circulated that Freescale was in a weak position after the move by NXP and STMicroelectronics to merge wireless operations.
“In the cellular handset chipset market, it has become evident that this business needs considerably greater scale in order to achieve a position of market leadership and long-term success,” commented Rich Beyer, Chairman and CEO of Freescale (pictured). “We feel the investment required to achieve that scale by Freescale will be better served extending our product portfolios where we are the leader and expanding our application expertise in sensors, analog, power and multimedia processing.”
Freescale said that they wouldn’t spin-off the division as the costs to compete were too great. Instead, Beyer is seeking a buyer or merger with another company.