Feeds

Motorola sees chips with everything

Cars, TVs and wireless devices will be backbone of new chip goldmine

  • alert
  • submit to reddit

The essential guide to IT transformation

Motorola expects the semiconductor industry to grow by 19 per cent in 2000, prompted by demand for chips in cars, televisions and wireless devices.

The company forecast that its own semiconductor segment would hit double-digit profit by the end of next year – one year ahead of schedule. Motorola is to develop four main areas of the sector: wireless communications, networking and computing, the automotive industry, and digital consumer products, Reuters reported.

The vendor forecast a sales surge in all four areas, with a 30 per cent annual growth rate in chips for wireless communications over the next five years, and 20 per cent growth for networking chips. This follows the company's major restructure in 1998, where it shed thousands of staff as its chip unit recorded a pre-tax loss of $1.22bn for the year. It was back in the black in 1999, as the industry recovered thanks to demand for devices such as smart phones.

On Friday, Hector Ruiz, executive in charge of semiconductor products, said the industry had turned the corner and was on an upward spiral. "After three miserable years, 1999 appears to be the beginning," he said. US analysts were also positive about the company's direction.

Motorola plans to cut costs by outsourcing more of its chip production and downscale plans for new plants, according to Brian Modoff, an analyst with Deutsche Bank. "The combination of these two efforts should reduce the company's depreciation expense while lowering cash consumption requirements and should have a positive impact on semiconductor operating margins," he said. ®

5 things you didn’t know about cloud backup

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
Judge nixes HP deal for director amnesty after $8.8bn Autonomy snafu
Lawyers will have to earn their keep the hard way, says court
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
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.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.