Motorola's Microprocessor Unit To Be Spun Off

Motorola, the provider of G4s for Appleis past and present lineup of G4-based machines and the source of many supply problems in the past, has finally decided to spin off its microprocessor unit, according to an article at C|Net. Motorola has cited tough times for the unit, including Appleis recent move to IBM processors for its top-of-the-line G5 computers. Motorola is hoping that the new, publicly-traded company will turn things around for the company. From C|Net:

In an effort to focus on five product categories in the communications and electronics systems markets, the Schaumburg, Ill., company intends to create a separate company out of its Semiconductor Products Sector (SPS), which builds chips such as the PowerPC.

Motorola said it believes the semiconductor unit would work best as a separate company. It reached that opinion after conducting a four-month review that evaluated semiconductor operations and also weighed its communications products and integrated-electronic-systems businesses.


But Motorola itself has gone through several tough years, and Galvin has announced plans to step down, citing a difference of opinion with fellow executives on the companyis direction. Galvin had spoken in the past about taking a back-to-basics approach.

Motorola chips are used widely in networking and automotive markets, and less often in computers. Motorola chips help control the power train in a number of automobiles, for example. But the SPS has gone through its own set of tough times, most recently surrendering to IBM a key role in delivering the PowerPC for Apple Computeris top-of-the-line desktop. Motorola and IBM both hold a PowerPC license, but each produces its own version of the chip.

You can read the full article at C|Netis Web site.