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Motorola To Spin Off Chip Division

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."

33 of 144 comments (clear)

  1. About time. by outZider · · Score: 3, Insightful

    Too bad they didn't do this a couple of years ago. We would have been a lot better off. Good to see the executives saw the same thing.

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    - oZ
    // i am here.
  2. 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?

    --
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    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.

    3. Re:Not a strong follower by Zelet · · Score: 5, Insightful

      The G5 are actually 25% cheaper to produce than the Moto G4s. The expense comes into manufacturing the mobos and the cooling systems and so the cost of the main components stays the same. The price point of the professional line of comptuers from Apple has not increased with the release of the G5.

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      ...And when they came for me, there was no one left to speak out for me." - Martin Niemoeller (1892-1984)
    4. Re:Not a strong follower by IM6100 · · Score: 3, Insightful

      Indeed. Motorola makes a fine line of embedded controllers and other processors and chips. I've worried for some time that trying to compete in the hot-dog contest with the likes of Intel and AMD was seriously damaging the company.

      Now maybe they can get back to the 68HC11, '12, '05, '08 parts where they've got a damned fine product line. Let someone else be the megaherz weenies.

      --
      A Good Intro to NetBS
    5. Re:Not a strong follower by deputydink · · Score: 2, Insightful

      I loved the HC11, with its Serial peripheral interface and the AD/DA converters.
      Really, the assembler language was great and 10 years or so ago you could get EVBU kits with the Buffalo environment loaded into EPROm on the board for, what, 50 bucks.
      I have a nephew who's learning them in a Microcontrollers class. Great chip in my opinion.

    6. Re:Not a strong follower by Anonymous Coward · · Score: 2, Insightful

      Apple's bread and butter is high margin professional systems. They will not bring the G5 'down market' until there are even faster G5s available on the high end. Availability and marketing are a lot more important than cost here.

    7. Re:Not a strong follower by lepton+noodle · · Score: 2, Informative

      Motorola made most of their microcontrollers for the automotive sector where massive volumes ruled. One unfortunate consequence of this was their absolute minimum of support for anyone designing lower volume applications, which I feel has really hurt them in getting mindshare of engineers working for smaller companies and expanding their market. Good tools were horribly expensive and most of their documentation was even worse (I still have nightmares about the horribly inconsistent Dragonball documentation). The only decent document I've seen from them is for the HC11, which is really a shame because they have some great chips. Companies like Atmel and Microchip are absolutely killing Motorola in the 8 bit market amongst smaller shops because of their readily available tools, decent documentation and support.

  3. About time ... by mfago · · Score: 4, Insightful

    The new company at least will give a damn about its chip business -- it's all they've got -- something that Mot itself never did.

    Surprised they didn't sell it, but they probably couldn't find any takers.

  4. Surrendering? by Anonymous Coward · · Score: 2, Insightful

    Surrendering to IBM a key role in delivering the PowerPC for Apple Computer's top-of-the-line desktop'

    Um... last time I checked it was Motorola lackluster development the drove Apple into IBM's arms.

  5. Difference of Opinion by 1010011010 · · Score: 3, Funny

    Fellow Executives: "We'd like to make market-leading products. And money."

    CEO: "Meh."

    Thre you have it, a difference of opinion.

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    1. Re:Difference of Opinion by johndoesovich · · Score: 3, Insightful

      "Just because we can do something doesn't mean we have to do it," Galvin told an audience of thousands of wireless executives on Monday during his keynote address at the CTIA Wireless 2003 spring convention.

      Galvin's comments run counter to what other CEOs had to say in their keynotes. Instead of stressing the voice call, most wireless companies are using the show to introduce even more complex data services such as behind-the-firewall access for mobile workers, or the ability to tap into wireless "hot spots" for high-speed Web connections, as Verizon Wireless announced Monday.


      I must say that I agree with Galvin in that they need to improve upon their current service before throwing in additional features. In a way this seems to be a little like M$. Let's throw out a whole bunch of new things and fix it later. I prefer they fix what they have and make it bullet proof and then add new *stuff*. By no means am I endorsing Motorola, I do not follow them at all but I have to agree with him on this topic.


      --
      alias dir='rm -rf /'
  6. 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.

    1. Re:Good for the semi guys by Johnny+Mnemonic · · Score: 2, Insightful


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

      As an avid Mac follower, yeah, I could believe that too, exactly for the reason that you mention--to spite Apple after Jobs killed the clones.

      Here's a related question: there've been rumors that Apple will sue Moto for stopping production on the G4 prematurely; apparently the contract with Moto spelled out a timeframe of warning that Moto would have to give Apple. Would the parent Moto be liable, or would the spun off company? Would the minimization of liability be one of the reasons to spin off the PPC unit, so that the liability follows the PPC company and doesn't harm the (viable) parent?

      I'm kinda surprised that Apple didn't buy the rights to the PPC--if they're not even interested, who would be?

      --

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      $tar -xvf .sig.tar
  7. This is hardly surprising... by schmidt349 · · Score: 5, Insightful

    Motorola has been having problems with their advanced semiconductor products, particularly PowerPC microprocessors, for years. When Apple first released the Power Mac G4, there were so many fabrication problems at Motorola's chip foundries that Apple initially had to scale back what were supposed to be 500MHz G4s to 450MHz, a move that really hurt Apple's credibility in the computing world.
    More recently, Moto had been having problems delivering G4 7447s in sufficient quantities for Apple to release their Powerbook upgrades, including the much-ballyhooed 15" Aluminum model. In any case, Apple's decision to go with IBM's PowerPC technology was probably motivated as much by pragmatic corporate survivalism as any other factor -- they simply couldn't afford to be tied down by a semiconductor sloth like Motorola.
    In any case, I doubt this means much for Moto's embedded processor and microcontroller business, which has been thriving for quite some time. It just doesn't operate under the same pressure as the rapidly advancing world of high-performance microprocessor products. The 68HC11 and HCS12 will probably be around for a very long time to come.

  8. Difference of opinion by bladernr · · Score: 5, Funny
    This follows earlier news that Motorola's CEO will step down, citing a 'difference of opinion' with fellow executives."

    I think the difference was he wanted to remain employed, and they didn't agree...

    --
    Sarcasm and hyperbole are the final refuges for weak minds
  9. What where they thinking by Anonymous Coward · · Score: 4, Funny

    Sure, it's great for employees to have an in-house Potato Chips departement, but companies should concentrate on one thing, and do it well.

  10. 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. :-(

  11. Any Metrowerks Guys Following this Thread? by Anonymous Coward · · Score: 2, Interesting

    What's to become of Metrowerks?

    Presumably it will follow the semiconductor division [since a CPU ain't worth diddly-squat without a compiler], but maybe they want to keep you so that you can write a compiler for their cellphone operating systems?

    Have you heard yet?

    1. Re:Any Metrowerks Guys Following this Thread? by kinshadow · · Score: 3, Informative

      Metrowerks is part of Motorola SPS. Thus, it will be part of the spin-off.

      --
      Sigpilot : I'm in the pipe, 5 by 5.
  12. I bet. by pb · · Score: 2, Interesting

    Motorola has done a horrible job of marketing their technology over the years, from the failed and forgotten AIM (Apple, IBM, and Motorola) alliance (remember? Taligent? "Pink"? Yeah, me neither...) to their more recent "Digital DNA" (I still don't know what that meant) marketing campaign.

    What does Motorola do? As far as the rest of the world is concerned, they make cellphones and stuff. People hear about the PowerMac from Apple, and occasionally the PowerPC from IBM, but they hear nothing that makes sense out of Motorola. Hopefully this will change, for their sake.

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    1. 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
  13. Motorola's sad decline by Infonaut · · Score: 4, Insightful
    Just a few years ago, Jim Collins and Jerry Porras wrote the classic business book Built to Last which detailed why some companies are great, and others are just good.

    Motorola was placed in contrast with Zenith. Both companies were established at around the same time and were basically in the same market. Over time, however, Zenith languished while Motorola kept on crankin' out the hits. Motorola's culture encouraged innovation and relentless focus on quality.

    Those of you who graduated from college in the 1990s or 2000s likely won't remember this, but in the 1980s, Motorola was one of the view companies that was consistently beating Japanese companies in quality. They were hailed by US government and business leaders alike as an exemplar of what an American business could do in a challenging international market.

    This is just further proof that nobody sits on top forever, and that keeping a very large, multinational business dynamic is a tremendously difficult task.

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  14. the ibook G3 is already IBM.... only G4s are Moto by johnpaul191 · · Score: 2, Interesting

    The G3 chips that Apple still uses (ibooks) have been made by IBM for some time now.

    Ithe rumor mills claim great things in store for the IBM G3s in future generations (including altivec support) and ever increased efficiency. I would guess in the next year or so, when Apple roughly predicted a G5 powerbook, we will see everything switch to G5 or these next generation G3 chips.

    These super efficient and powerful G3 chips might lead to more fun machines like the fanless cube and iMac... let alone great news for ibook users.

  15. Re:Could Apple's CPU Woes Finally Be Behind Them? by Anonymous Coward · · Score: 2, Informative

    Are you just trolling? If not, this might help you next time. These things are easy to do.
    http://docs.info.apple.com/article.html?artnum=951 33

  16. Re:merge the spinoff and MIPS to create a competit by temojen · · Score: 2, Interesting

    That whiz-bang Opteron/Itanium is Backwards compatible to the Pentium II MMX/K6-2, which is backwards compatible to the 80486, which is backwards compatible to the 386+387, which is backwards compatible to the 286+287, which is backwards compatible to the 8086+8087, which is backwards compatible to the 8080, which is backwards compatible to the 8008, which is backwards compatible to the 4004, which was designed for use in a pocket calculator. Likewise, that VIA K7VMM is backwards compatible to the PC JR and Win XP is backwards compatible (to some degree) to QDOS.

    Because I do not use legacy binary-only software, I do not need my machine to be backwards compatible to run old DOS programs etc. Some things can be done much more efficiently with an architecture designed with modern features in mind from the start. I would love to get my hands on sizeable quantities of PPC G5 workstations, but because of economies of scale & microsoft's stranglehold, the only architechture available at a reasonable price from multiple vendors is the descendants of the IBM PC.

  17. My experience there. by gosand · · Score: 4, Informative
    Those of you who graduated from college in the 1990s or 2000s likely won't remember this, but in the 1980s, Motorola was one of the view companies that was consistently beating Japanese companies in quality. They were hailed by US government and business leaders alike as an exemplar of what an American business could do in a challenging international market.

    I graduated in '93, and I got a job at Motorola in the cellular division. I worked there for 5 years, and couldn't take it anymore. Their "culture" is manufactured, and I was very surprised that they got anything accomplished. But it depends on the different divisions and how they are doing. Ours (cellular services) did OK, but we were riding on the coattails of the divisions that were doing really good (phone mfgr and radios comes to mind). They had a bonus plan in place were every 6 months you got a bonus if you met the goals set out for your division. It was given to you as a percentage of what you made in the previous 6 months. My first 6 months there we got 11%, then 4%, then 1.3%, then they cut it out all together. The year before I got there, one division got 34%. They capped it after that. It would actually produce animosity within the company. It was generally a solid company that was on a steady decline. People who had been there 10 years who were just skating on their "time served". People who had been there 20+ years who were called "lifers" and they could pretty much do as little as they wished. Ten years was called "getting your tenure". Boy, those people got a wake-up call a couple of years ago. Some people have only worked there, and they don't know what goes on outside of Moto. If you have ever met someone who has worked there for a long time, you know what I mean. Many people I know that left there have had similar experiences.

    It is a very weird place. After I lost my job at the place I left Moto for (company investors pulled out during the bubble burst), I went back to Moto. I thought "it can't be as bad as I remember it." It was. I went to have a meeting to do a pre-interview. Some HR drone talked to me to gauge my skillset. I was told it would be about 4 weeks for my paperwork to be processed, and if I was a fit anywhere, I would be contacted for interviews. It was such a sterile, devoid atmosphere that it was creepy. I told her "thanks, but no thanks" and walked out, vowing to never go back.

    This is just further proof that nobody sits on top forever, and that keeping a very large, multinational business dynamic is a tremendously difficult task.

    I got to see just one small piece of the company, and if the rest of it was anything at all like where I worked, good riddance. Of course, I do own stock that I purchased while there. It was around 90, then did a 3 to 1 split, and now it is around 11. Yay.

    --

    My beliefs do not require that you agree with them.

  18. Re:Could Apple's CPU Woes Finally Be Behind Them? by otis+wildflower · · Score: 2, Insightful

    First I had to take the entire thing apart. This, if you've been inside a laptop, is not an easy trivial task. It needs the battery and case to come off, the drive and optical drive to come out, and apples STUPID design inside them meant I had to file away some parts as they were put in without obviously meaning to be taken apart again.

    RTFM, dumbass.

    For starters, Apple's optional AirPort is built to use the pre-wired Powerbook antennae (for what they're worth in the TiPB) so it's a custom part. You _can_ use a standard part (such as an 802.11g) in the PC-card slot, though it's uglier.

    In addition, according to Apple's free installation documentation, you remove the battery, pull the base plate, slip in the airport card, attach antenna, and close it up. They even draw you a picture!

    If you were pulling optical drives or filing pieces, then you obviously didn't RTFM.

    OTOH, having worked on junker PC laptops for the better part of a decade, I have to say that the PB is probably the easiest to work on I've ever owned. I had to reseat the 'q' key at one point after I dropped something on the keyboard, and luckily the keyboard is removable via ribbon connector! I restored the kybd with a bit of under-membrane surgery and tweezing, and I couldn't have asked for better. BTW, if you want to upgrade the PB RAM, the SODIMM slot is under the easily-removed keyboard.

    I plan on holding onto mine until the toy budget recovers and/or the G5 Powerbook is available.

    I need to vent guys and here I hope I find sympathy! I HATE MACS

    There are perfectly valid reasons to hate Macs. Your rant, OTOH, is just sad.

    Anyway, I've talked my friend into getting rid of her Mac addiction, she will definitely be buying a Dell next!

    With friends like you, who needs Saddam Hussein?

  19. Re:Not necessarily by johndoesovich · · Score: 2, Interesting

    I understand what you are saying too. I do have a mono phone that I use for talking & text messages. The nice thing about text messages is that it can be delivered late, not phone calls. How can you depend on a system that is not dependable? I expect that all my calls are going to come through to me not too look down at my phone and see 1 missed call when it did not ring. Could it be the phone? Probably, my problem is not only with missed calls but dropped calls. I can also understand each cell site can have X amount of people and if I am transferring sites and it happens to be full, tough I get dropped.

    Yeah cool, bring additional features, fix what you have first and then add on. Otherwise you are going to end up Windows XP, an OS that is nearly 2+ gb to install where most of the code is patches to existing problems.

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    alias dir='rm -rf /'
  20. Ethnical Considerations in Spinning off SPS by reporter · · Score: 2, Insightful
    In all the technical discussion, we have overlooked the ethical aspect of this spinoff. Clearly, the Semiconductor Products Sector (SPS) is not performing well, and Motorola could have simply downsized the division, firing thousands of loyal, hardworking American employees. However, instead of acting in this ruthless way, Motorola decided to spin off the SPS into a separate company so that it has a fighting chance to survive and to enable its employees to pay the house mortgage, braces for the kids, etc.

    IBM did the same thing with its old printer division. IBM spun off the division into a separate company, Lexmark.

    In this age where many companies like Sun, Cisco, and Intel favor H-1B workers and deliberately create a work environment with brutal, cutthroat competition, it is nice to know that some companies like Motorola and IBM still try to cling to some shred of humanity that once characterized the finest American companies.

    ... from the desk of the reporter

  21. Re:Your woes seem to be firmly ahead of you ... by unother · · Score: 2, Funny

    ...and coherence seems to be firmly behind you...

  22. This man speaks the truth! by Magnus+Pym · · Score: 2, Informative

    Speaking as an ex-Motorolan, I have to agree that this guy is spot-on. I worked there for two years, and this place was as close to Dilbert-land as can be possible in real life. "Steady decline", lifers, guys who have not done a stitch of work for years, baffling political undercurrents etc. I quickly learned that some of the secretaries are mines of information. I befriended a pretty one to whom all the bosses were known to spill the beans to make themselves seem important, and learned of important stuff weeks (sometimes months) before public pronouncements.

    During the two years I worked there, I worked on at least 5 different projects that were subsequently canceled. Motorola does not believe in canceling projects efficiently. What happens is that funding for the project dries up, and the politically savvy guys get out. The naive ones (I was one for a while) show up to work and keep working, desperately trying to fix bugs etc while their bosses try to feign interest.

    Motorola does not have much longer to run. Samsung and Nokia will kick their asses.

    Magnus.