Freescale Needs to Divide to Conquer

My interest in Freescale is simply that I have friends who work there. I have never worked for Freescale.  But I DID work for Intersil, and the current Freescale CEO Rich Beyer.

That’s why I find it interesting that GigaOM speculates that part of Freescale could become part of Intersil. Which part, they don’t say. 

Each of the divisions made more than $1 billion in 2007 and could be combined with similar divisions at other firms such as Infineon, Broadcom, STMicroelectronics or even Intersil. Earlier this year, Freescale got a new CEO (from Intersil) with M&A experience, so change is certainly in the air.

My guess is that Intersil would go after the Power portion – they had their wireless play some years ago – been there, done that (and made money off the sale of Wireless). 

Freescale should get ready for change. I visited the Austin-based chip maker yesterday to talk about wireless and networking chips as well as broad trends in the industry, and walked away realizing that the firm needs to split itself up in order to survive.

The Wireless division going to Broadcom would certainly be interesting though – Broadcom was a VERY tough competitor of ours in the Wireless sector.  And I already know for a fact they have hired a number of ex-Intersil Wireless employees in the last few months.

Freescale Needs to Divide to Conquer – GigaOM