Comments on: Freescale Needs to Divide to Conquer http://gigaom.com/2008/05/30/freescale-needs-to-divide-to-conquer/ Trusted Insights and Conversations on the Next Wave of Technology Tue, 24 Nov 2009 01:24:38 +0000 http://wordpress.com/ hourly 1 By: For Sale: Freescale’s Wireless Chip Biz — Cheap - GigaOM http://gigaom.com/2008/05/30/freescale-needs-to-divide-to-conquer/#comment-902658 For Sale: Freescale’s Wireless Chip Biz — Cheap - GigaOM Thu, 02 Oct 2008 21:21:18 +0000 http://gigaom.com/?p=13622#comment-902658 [...] business units of the former in-house chip division of Motorola would have seen this coming. It has too many business lines, most of which didn’t have enough market share to be truly competitive, as we said back in [...] [...] business units of the former in-house chip division of Motorola would have seen this coming. It has too many business lines, most of which didn’t have enough market share to be truly competitive, as we said back in [...]

]]> By: AMD and Freescale Fire Sales Won’t Burn Austin - GigaOM http://gigaom.com/2008/05/30/freescale-needs-to-divide-to-conquer/#comment-895589 AMD and Freescale Fire Sales Won’t Burn Austin - GigaOM Mon, 25 Aug 2008 13:45:44 +0000 http://gigaom.com/?p=13622#comment-895589 [...] substance to some rumors I’d heard about the wireless chip division being for sale and my general theory that Freescale needs to slim down. We knew the wireless division was in trouble, especially as its largest customer (former parent [...] [...] substance to some rumors I’d heard about the wireless chip division being for sale and my general theory that Freescale needs to slim down. We knew the wireless division was in trouble, especially as its largest customer (former parent [...]

]]> By: Stacey Higginbotham http://gigaom.com/2008/05/30/freescale-needs-to-divide-to-conquer/#comment-881417 Stacey Higginbotham Mon, 02 Jun 2008 02:26:23 +0000 http://gigaom.com/?p=13622#comment-881417 @David, I'm arguing less for a split into independent businesses and more likely a split as a result of another firm buying out some of Freescale's businesses. My thought is the buyer could either subsume or crush the dysfunctional Freescale culture while keeping the tech intact. @David, I’m arguing less for a split into independent businesses and more likely a split as a result of another firm buying out some of Freescale’s businesses. My thought is the buyer could either subsume or crush the dysfunctional Freescale culture while keeping the tech intact.

]]> By: David H. Deans http://gigaom.com/2008/05/30/freescale-needs-to-divide-to-conquer/#comment-881324 David H. Deans Sun, 01 Jun 2008 13:07:56 +0000 http://gigaom.com/?p=13622#comment-881324 Stacey, I too am confused by your rationale -- given Freescale's track record. Yes, it's been a while since they were spun off from Motorola, and clearly the core company culture is still very much intact at Freescale (regardless of the infusion of new leadership). That said, what did the team at Freescale tell you that led you to believe that splitting the company up would enable them to cast off the negative shadow from their Motorola business culture legacy? It would appear that Freescale's failure to grow is the result of some deep-rooted issues that still aren't being addressed by the current leadership team. My point: ignoring the obvious legacy white elephant in the board room discussions only perpetuates the apparent denial -- substantive change at Freescale will require more than merely creating smaller, but otherwise equally dysfunctional, independent businesses. Stacey, I too am confused by your rationale — given Freescale’s track record. Yes, it’s been a while since they were spun off from Motorola, and clearly the core company culture is still very much intact at Freescale (regardless of the infusion of new leadership).

That said, what did the team at Freescale tell you that led you to believe that splitting the company up would enable them to cast off the negative shadow from their Motorola business culture legacy?

It would appear that Freescale’s failure to grow is the result of some deep-rooted issues that still aren’t being addressed by the current leadership team.

My point: ignoring the obvious legacy white elephant in the board room discussions only perpetuates the apparent denial — substantive change at Freescale will require more than merely creating smaller, but otherwise equally dysfunctional, independent businesses.

]]> By: Shimon http://gigaom.com/2008/05/30/freescale-needs-to-divide-to-conquer/#comment-881314 Shimon Sun, 01 Jun 2008 11:35:36 +0000 http://gigaom.com/?p=13622#comment-881314 By "cinergy" Obviously I meant "synergy" By “cinergy” Obviously I meant “synergy”

]]> By: Shimon http://gigaom.com/2008/05/30/freescale-needs-to-divide-to-conquer/#comment-881313 Shimon Sun, 01 Jun 2008 11:31:37 +0000 http://gigaom.com/?p=13622#comment-881313 Lets split the discussion in to 2: 1. The R&D efficiency 2. Attractiveness to a potential buyer. The latter - I'm not an expert, so I'll not include it in this comment. Back to R&D efficiency. A huge efficiency gain from cinergy exists in the company: both Power Quick and DSP lines enjoy same basic sub modules: Quick engine, sRIO interface, cash engines, multi-core knowledge, and many others. So I really see only less efficiency in a split !! The challenge of Freescale's managers is to build a strong IP foundation, and keeping the product teams focused on their delivery. Lets split the discussion in to 2:
1. The R&D efficiency
2. Attractiveness to a potential buyer.
The latter – I’m not an expert, so I’ll not include it in this comment.
Back to R&D efficiency.
A huge efficiency gain from cinergy exists in the company:
both Power Quick and DSP lines enjoy same basic sub modules:
Quick engine, sRIO interface, cash engines, multi-core knowledge, and many others.
So I really see only less efficiency in a split !!
The challenge of Freescale’s managers is to build a strong IP foundation,
and keeping the product teams focused on their delivery.

]]> By: Stacey Higginbotham http://gigaom.com/2008/05/30/freescale-needs-to-divide-to-conquer/#comment-881196 Stacey Higginbotham Sat, 31 May 2008 20:26:40 +0000 http://gigaom.com/?p=13622#comment-881196 Aee you talking about SigmaTel? The acquisition closed after Beyers arrived, but was agreed to before he was named CEO. Specialization makes better use of R&D dollars because it's expensive to design chips,so putting more money in two or three designs rather than five or six gets you farther. It's not the only way to do it, but is more efficient. As for the split, I think Freescale has failed to grow much since its spin off. In areas like wireless, it's losing market share, while it's merely holding ground in automotive. To keep moving forward as it is would be turning its back on reality. It has good technology, but it's hard to see one buyer wanting all of it. That's why I argue for a split of some sort. I hope that helps. Aee you talking about SigmaTel? The acquisition closed after Beyers arrived, but was agreed to before he was named CEO. Specialization makes better use of R&D dollars because it’s expensive to design chips,so putting more money in two or three designs rather than five or six gets you farther. It’s not the only way to do it, but is more efficient.

As for the split, I think Freescale has failed to grow much since its spin off. In areas like wireless, it’s losing market share, while it’s merely holding ground in automotive. To keep moving forward as it is would be turning its back on reality. It has good technology, but it’s hard to see one buyer wanting all of it. That’s why I argue for a split of some sort. I hope that helps.

]]> By: Anonymous Coward http://gigaom.com/2008/05/30/freescale-needs-to-divide-to-conquer/#comment-881171 Anonymous Coward Sat, 31 May 2008 16:28:58 +0000 http://gigaom.com/?p=13622#comment-881171 Stacey, why do you believe that specialization is the only path to proper R&D allocation? What leads you to conclude that Freescale will split? The last move they made was an acquisition and this was with the new CEO in place, no? Do tell, pls. Stacey,
why do you believe that specialization is the only path to proper R&D allocation? What leads you to conclude that Freescale will split? The last move they made was an acquisition and this was with the new CEO in place, no? Do tell, pls.

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