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Motorola Spins Out Semis

Motorola intends to separate its semiconductor operations into a publicly traded company. The move aims to increase the company’s focus on communications and integrated electronic systems.
Motorola intends to separate its semiconductor operations into a publicly traded company. The move aims to increase the company's focus on communications and integrated electronic systems.


Motorola has not finalised details of the transaction involving its Semiconductor Products Sector (SPS) business. Motorola says that the apparent upswing in the semiconductor industry cycle leads it to the belief that the time is right to take these actions.


Under consideration is an initial public offering (IPO) of a portion of SPS, followed by a distribution of remaining shares to shareholders in a tax-free manner, subject to Motorola board approval, favourable market conditions, regulatory approvals and other customary conditions.


The remaining five Motorola business sectors will be Personal Communications (cellular handsets), Global Telecom Solutions (cellular network infrastructure), Commercial, Government and Industrial Solutions (integrated radio communications and information), Integrated Electronic Systems (automotive electronics, embedded computing and portable energy) and Broadband Communications (cable and broadband communications).



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