Feeds

NatSemi exits PC CPU market

Cyrix not to be sold after all -- at least not yet...

  • alert
  • submit to reddit

The essential guide to IT transformation

National Semiconductor is getting out of the PC processor business, as predicted, but not quite in the way everyone had anticipated. Instead of selling off its Cyrix subsidiary, NatSemi will sell off its majority interest in its South Portland, Maine 0.18 micron fab, and make many of its x86 processor people redundant. Some 550 jobs will go, through a mix of early retirements, layoffs and not replacing staff who join other companies. That figure, the company said today, will include 165 jobs cuts being made at NatSemi's Singapore facility, announced last month. NatSemi said the job cuts represent less than five per cent of its total headcount. Meanwhile, the company will focus its CPU development efforts on the emerging information appliance market. NatSemi CEO, president and chairman Brian Halla has been rattling on about information appliances for some time -- he made it the subject of his keynote at last autumn's Microprocessor Forum, for instance -- and the demand it has for very low cost, ie. integrated, processors. And integrated processors are, of course, what Cyrix is all about. So, moving toward the information appliance market was been a part of NatSemi's stategy for some time, and presumably Hallapeno now feels it's time to kick away the support of sales to low-end PC manufacturers and target appliance vendors exclusively. It also leaves it free of the ongoing Slots and Sockets arguments -- now it needs support neither. The company said it will continue to develop its integrated processor line, including its MediaGX processor, suggesting its recently reveled roadmap still holds true. After all, what we're talking about here is a business shift rather than a technology one. NatSemi said it will take a $250-300 million hit in its Q4 results, which ends on 30 May, to cover the layoffs. The balancing effect of the South Portland plant sale is uncertain since NatSemi is still talking to potential buyers. More long term, the company said it didn't expect sales of processors to information appliance vendors -- and its parallel sharpening of its focus on analog devices -- to counter the loss of sales to PC vendors until next year. It then expects to see margin percentages return to the mid-40s, and growth to return to double figures. ® See also NatSemi to 'announce Cyrix sale' Cyrix pays Register a visit How Cyrix sees bus architecture Cyrix downprices current chips Cyrix, IBM rumour mill cranks up

5 things you didn’t know about cloud backup

More from The Register

next story
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?