BANGALORE, India – Freescale Semiconductor, its interest payments decreasing and its debt reduced through the funds generated through an IPO, says it is poised to invest in more R&D as it seeks to move beyond PCs to supply mobile device and “white box” manufacturers.
“Semiconductor companies now need to become much more systems-oriented,” Freescale CEO Rich Beyer said during Freescale’s technology forum here this week. “We are into an era of connected intelligence where data is ubiquitous, and these devices [such as tablets] will conform to us and not have us conform to them, as in the case of the personal computer.”
Beyer predicted the post-PC era will be characterized by a change from content creation to content consumption. That means service providers will be forced to upgrade their networks more frequently, often before the costs of these investments can be fully amortized.
Beyer also stressed that Freescale will continue to target the automotive, medical, smart grid, wireless and smart mobile devices markets.
While many chip makers are targeting design wins in the next round of tablets from Apple and others or Dell netbooks, Beyer recently said Freescale “would like to work with white-box vendors in China.” The company is betting it can collaborate with Chinese makers of what it refers to as “non-branded consumer products.”
Why assume that the mobile revolution is a post-pc era?. PC are going to stay here and co-exist with all these new gadgets for quite a long time. So companies planning their strategies should not count out PCs as something gone by
It would be interesting for someone ("somebody else, not me" as they say ;) ) to write a book following the trajectories of high-tech manufacturer's like Motorola/Freescale and HP. I remember the richly diverse product base that Freescale had--discretes, optoelectronics, communication IC's, processors, and comprehensive coverage of the logic families, including their ECL products, and how some of these products were spun off, with the creation of On-Semiconductor as an example.
In what ways is a company's growth encouraged, and what factors stifle or subvert creativity? It seems that creativity, properly guided and harnessed propels a company forward and helps created new markets that provide positive feedback for further growth. It will be interesting to follow Freescale over the next few years and watch their progress.
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