Tuesday, September 7, 2004
Freescale Semiconductor Inc. said the company will increase chips outsourcing to foundry leader Taiwan Semiconductor Manufacturing Co. (TSMC) listed on its top prior source choice, according to Michael Mayer, the Freescale's chairman and chief executive officer (CEO).
Mayer indicated that automotive chips, embedded chips, networking chips and wireless chips would be the major products of his company's Taiwan branch. His company has depended on automotive chips and embedded chips for a combed 50% of its revenue as well as networking and wireless chips for 25%, respectively, of its revenue. As a part of the strategy, the company has also entered into a five-year agreement with STMicroelectronics and Koninklijke Philips Electronics to co-develop 90nm to 32nm process technologies and share a 12-inch fab in Crolle, France.
The current strategy has Freescale only outsourcing chip production for trailing-edge technologies or technologies the company does not specialize in, Meyer said. Freescale is also producing chips at its own seven fabs and two packaging and testing plants, and 10% of its annual revenues are allocated for capital spending, he added. Four of the seven fabs are 6-inch fabs, and the remainder is 8-inch fabs. Freescale specializes in low-voltage process technologies, which currently outsource 13% of its total chip production to wafer foundries.
By: DocMemory
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