Feeds

Moto to revive chip division with $400m feed

More production to be outsourced

  • alert
  • submit to reddit

Motorola plans to increase spending on chip-making kit by 60 per cent this year in anticipation of a ten per cent increase in sales, general manager of the company's Semiconductor Products Sector (SPS), Bill Walker, told Bloomberg today.

That increase amounts to an extra $400 million. Small, perhaps, in comparison with the cuts the company has made over the past few years, but positive nonetheless.

During the last three years, Motorola has shut 19 out of 29 plants, all of them in the US and Asia. Such moves failed to prevent SPS posting a $1.52 billion loss last year and $1.91 billion in 2001, both contributing handsomely to the company's overall loss.

The new investment is unlikely to reverse the now-complete closure programme. Walker said SPS intends to outsource more production to foundries like Taiwan Semiconductor - which, not coincidentally, he was visiting this week. Motorola's own output is currently at 65 per cent of capacity, he admitted.

Walker denied that Motorola was planning to sell off SPS. ®

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
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?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Choosing a cloud hosting partner with confidence
Download Choosing a Cloud Hosting Provider with Confidence to learn more about cloud computing - the new opportunities and new security challenges.