Motorola's SPS Becomes Freescale Semiconductor
The Semiconductor Products Sector (SPS) of Motorola Inc. (Austin, TX) has been renamed to Freescale Semiconductor Inc. (Austin. TX), which filed in December 2003 to go public from its parent company. Motorola will spin off the $5 billion division into a separate company through an initial public offering.
Freescale Semiconductor will add $1.5 billion in debt to its $2 billion initial public offering, according to recent filings with the US Securities and Exchange Commission. According to the filing, Motorola comprised 23 percent of the chip unit's sales for the nine months ended Sept. 27, 2003. Motorola has committed to purchase its cellular chips from the chip unit only through 2006.