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Motorola To Spin Off Chip Division

Posted by simoniker on from the parto-of-moto-go-solo dept.

dafz1 writes "According to an article at CNET News, Motorola has announced they will create a new company from their Semiconductor Products Sector (SPS), which builds chips such as the PowerPC. Reasons cited include 'surrendering to IBM a key role in delivering the PowerPC for Apple Computer's top-of-the-line desktop'. This follows earlier news that Motorola's CEO will step down, citing a 'difference of opinion' with fellow executives."

6 of 144 comments (clear)

  1. Not a strong follower by IWantMoreSpamPlease · · Score: 3, Interesting

    in this, but from what I have gathered, Motorola was the prime reason Apple chips fell behind, Moto and Co. simply weren't interested (or up to the task?) in producing new chips for them.

    With a new division spun off, perhaps this will change?

    --
    So rise up, all ye lost ones, as one, we'll claw the clouds.
    1. Re:Not a strong follower by Exitthree · · Score: 5, Interesting

      I don't think it will change. Apple is already moving off to greener pastures (IBM). Once IBM can lower the requirements of a G5 so that they are suitable for notebooks, and cheap enough for consumer machines, I expect the G4 to be dropped completely. In addition, Apple will probably use the next revision of the G3 with Altivec, which IBM is developing, for the iBooks.

    2. Re:Not a strong follower by herwin · · Score: 5, Interesting

      The main problem for Apple was that Motorola found making slower chips for embedded systems to be more profitable than making faster ones for computers. So Apple turned to IBM, which does make computers and understands the issues. The new G5 is very competitive.

  2. Good for the semi guys by mveloso · · Score: 4, Interesting

    Years ago I was talking to some of the semi guys, and they were royally pissed at MOTO corporate for screwing them over, funding-wise. The PPC division was always paranoid that they were getting screwed because Moto lost big $$ when Apple shut down the Mac clones way back when.

    Basically, they believed Moto corporate was sandbagging the PPC to "screw Apple."

    One thing for sure, they definitely need better cooks for the broth. They've seem to forgotten how to make chips.

  3. No More Soylent Dog Chow by buckhead_buddy · · Score: 3, Interesting
    Many tech companies are proud of the claim that We eat our own dog food.

    It's seems likely to me that Motorolla did not want to use it's own semiconductors in it's communications business. But doing so would, in essence, be a vote of no confidence in their own semiconductor business.

    By spinning off their semi-conductor biz and framing it as a move to meet demands from other customers, they are able to ditch their processors without outright killing their semiconductor business.

    If the spinoff does poorly, they'll quietly kill it later. If it does well, they'll either start using their products again or sell it off for a big profit.

    It's sad to see Motorolla leaving the chip business though. :-(

  4. Re:I bet. by IM6100 · · Score: 3, Interesting

    It really doesn't matter what 'Joe on the street' thinks Motorola does.

    Joe's car has eight or twelve Motorola 6805 processors in it, and almost every appliance in his house has a motorola processor or two. It matters a lot more what the hardware designers think of Motorola, and Motorola is STRONG in that market.

    --
    A Good Intro to NetBS