Freescale also announced it
would consolidate its manufacturing operations under David Reed, a
longtime TI exec who more recently led Globalfoundries Inc.'s 28-nm
production in Dresden, Germany. Lowe said Freescale's manufacturing
operations were previously split among several groups, unlike most chip
"I think [Reed's] balance of having worked at a
semiconductor company and having foundry experience is really going to
be helpful to Freescale because we have our own fabs and also use
foundries," Lowe said.
Lowe—who took the reins as Freescale's CEO
in June—had said previously that he would spend his first few months on
the job developing a plan to improve Freescale's market share by
growing the company faster than the overall semiconductor industry.
said it would also re-align its R8D spending to focus about 90 percent
of spending on the company's product areas of focus. The company said it
would also shift sales resources to align with industry growth in China
and select opportunities in Korea, Taiwan and Japan.
Freescale said its restructuring moves are expected to save the company $35 million to $40 million per year.
Thursday, Freescale reported financial results for the third quarter,
ended Sept. 28, and provided a forecast for the fourth quarter.
(Austin, Texas) reported quarterly sales of $1.01 billion, down 2
percent from the second quarter and down 11 percent from the third
quarter of 2011. The company reported a net loss for the quarter of $24
million, or 10 cents per share, narrowed from both the previous and
For the fourth quarter, Freescale said it expects sales to fall to between $920 million and $960 million.
cited general economic malaise as the biggest reason for the projected
sales decline. Freescale, like other chip firms, has been hurt by weak
While he said he was hesitant to make
predictions about next year, Lowe said the projections given by chip
companies point to a sixth straight quarter of revenue decline versus
the year-ago quarter, which he said would match the industry's longest
streak ever. On the other hand, he said, negative economic news abounds,
from the Eurozone crisis to an economic slowdown in China.
"It's a conundrum," Lowe said.