Freescale Semiconductor

Freescale Semiconductor, Inc.

File:Freescale (2).svg
Company type	Public
Industry	Semiconductors
Founded	2004 (2004)
Defunct	Template:End date and age
Fate	Merged
Successor	NXP Semiconductors
Headquarters	Austin, Texas , United States
Key people	Greg Lowe, CEO
Revenue	Increase$4.186 billion (2013)
Operating income	Increase$531 million (2013)
Net income	Decrease-$208 million (2013)
Number of employees	16,800 (2013)
Website	freescale.com (Redirects to www.nxp.com)

Freescale Semiconductor, Inc. was a U.S.-based semiconductor company established in 2004 following the separation of Motorola's Semiconductor Products Sector. The firm focused on producing integrated circuits serving automotive, embedded systems, and communications industries. After being acquired by a private equity consortium in 2006, Freescale eventually merged with NXP Semiconductors in 2015.

Separation from Motorola and Public Offering

In 2002, Motorola's Semiconductor Products Sector contributed $5.0 billion in semiconductor sales towards Motorola’s overall revenue of $27 billion.

On October 6, 2003, Motorola declared its intention to spin off the semiconductor division under the provisional name SPS Spinco.

Freescale’s Initial Public Offering took place on July 16, 2004. Shares were priced at $13 each, which was below the originally estimated range of $17.50 to $19.50 due to prevailing market pressures on technology stocks. Motorola shareholders received a dividend distribution of 0.110415 Freescale shares for every Motorola share they owned on December 2, 2004.

Acquisition

On September 15, 2006, Freescale agreed to be acquired for $17.6 billion—equating to $40 per share—in a transaction led by the Blackstone Group. At that time, the stock price had climbed from its IPO price of $13 in July 2004 to $39.35 during after-hours trading as the acquisition news emerged. The buyout was ratified by shareholders at a special meeting held on November 13, 2006, and finalized on December 1, 2006. This deal ranked among the largest private equity buyouts within the technology sector and was one of the top ten buyouts overall.

Second Public Offering

Freescale submitted paperwork for a second initial public offering on February 11, 2011, finalizing the process by May 26, 2011, with its shares listed on the New York Stock Exchange under the symbol FSL. At that point, the company carried $7.6 billion in debt and was under scrutiny due to investigations concerning IPO-related misconduct.

MH370 Incident

On March 8, 2014, Freescale publicly confirmed that 20 of its employees were among those who perished in the disappearance of Malaysia Airlines Flight 370.

Corporate Merger

In March 2015, Freescale agreed to merge with NXP Semiconductors in a deal valued at $40 billion. The transaction was completed on December 7, 2015, resulting in the creation of a dominant entity within the automotive semiconductor sector.

Automotive Sector

Freescale engineered MEMS-based satellite accelerometers and Airbag System Basis Chips, along with dual-axis SPI inertial sensors designed for PSI5-compliant airbag systems, which were introduced in 2011. In 2008, the company launched microcontrollers tailored for anti-lock braking systems and electronic power steering applications. Additionally, Freescale manufactured pressure sensors utilized in engine control systems.

Its SMARTMOS analog product suite features power actuation integrated circuits and system basis chips specifically aimed at hybrid vehicle technologies. In collaboration with McLaren Electronic Systems in 2008, Freescale worked to enhance Kinetic Energy Recovery System (KERS) technology for Formula One racing vehicles, intending to adapt these advancements for consumer automobiles.

Additional Divisions

Freescale’s semiconductor portfolio encompasses the Microcontroller Solutions Group (MSG), Networking and Multimedia Group (NMG), and RF, Analog and Sensors Group (RASG). Under IBM’s stewardship, the company supplied PowerPC microprocessors for Apple’s PowerBook laptops and Mac mini desktops until Apple transitioned to Intel processors in 2006. Freescale played a foundational role in establishing Power.org to support the Power Architecture ecosystem.

The DragonBall line of microprocessors from Freescale traces its origins to the Motorola 68000 family and is designed for low power consumption. Its Digital Signal Processor offerings, based on StarCore Technology, cater to markets including broadband wireless communications, Voice over IP services, and video infrastructure.

Legal Proceedings

Freescale was involved in patent infringement disputes initiated by Marvell Semiconductor and Tessera Corporation. The lawsuit with Marvell, which included claims over seven patents, was resolved through settlement in 2015. Following an unfavorable ruling against Tessera Corporation, Freescale reached a settlement by paying an undisclosed sum.

See also

• ON Semiconductor, another semiconductor spinoff from Motorola
• List of Freescale products

External links

• Archived corporate website from 2015