editor's blog
Subscribe Now

Freescale Acquired by NXP

Did not see that coming.

American chipmaker Freescale will be acquired by Dutch rival NXP in a cash and stock deal worth about $11.8 billion. The combined firm will have a valuation of about $40B, making it one of the larger semiconductor vendors in the world. Freescale shareholders will receive about one-third of a share of NXP stock and $6.25 in cash for each share of Freescale stock.

The deal gives Freescale an “enterprise value” (the net worth of the company minus its cash in the bank) of $16.7 billion. The purchase price is considerably below that sum because Freescale doesn’t actually have cash in the bank; it’s in debt. So NXP will be acquiring Freescale’s debt in addition to its intrinsic value as a company, a pretty typical arrangement in these situations.

For the historically minded, Freescale was originally called Motorola Semiconductor after it was spun off from parent company Motorola (which is now part of Google). Motorola/Motorola Semi created many of the embedded world’s most popular microprocessors, including 68HC05, 68HC11, and the 68000 family that powered early Sun workstations and Apple’s first Macintoshes. The company had some misses, too, like the 88000 RISC architecture and the “RISC-ified” ColdFire. In recent years, the company had most of its success in automotive and deeply embedded industrial segments. The company got its start almost 100 years ago, making radios for automobiles, hence the name Motorola: motorized Victrola.

For its part, NXP was once Philips Semiconductor, the chip-making arm of the giant Dutch electronics firm, before being spun off in 2006. The acquisition is expected to close in the second half of this year.

Leave a Reply

featured blogs
Sep 21, 2020
Technology is changing the strategies we use to do things - oh so fast that 2010 seems like a distant past- within many spaces -- including the way we do our current topic of interest - Timing... [[ Click on the title to access the full blog on the Cadence Community site. ]]...
Sep 21, 2020
Semicon, the world’s largest semiconductor conference and exhibition, is September 23-25 in Taiwan. Like most shows of its size and caliber, Semicon boasts a long and illustrious list of exhibitors (500+), and countless forums, symposiums, and workshops. Of course Semic...
Sep 18, 2020
[From the last episode: We put the various pieces of a memory together to show the whole thing.] Before we finally turn our memory discussion into an AI discussion, let'€™s take on one annoying little detail that I'€™ve referred to a few times, but have kept putting off. ...
Sep 16, 2020
In addition to the Great Highland (Scottish) bagpipes, the Uilleann (Irish) bagpipes, and the Northumbrian (English) bagpipes, there are myriad other offerings spanning the globe....

Featured Video

Product Update: Family of DesignWare Ethernet IP for Time-Sensitive Networking

Sponsored by Synopsys

Hear John Swanson, our product expert, give an update on Synopsys’ DesignWare® Ethernet IP for Time-Sensitive Networking (TSN), which is compliant with IEEE standards and enables predictable guaranteed latency in automotive ADAS and industrial automation SoCs.

Click here for more information about DesignWare Ethernet Quality-of-Service Controller IP

Featured Paper

Helping physicians achieve faster, more accurate patient diagnoses with molecular test technology

Sponsored by Texas Instruments

Point-of-care molecular diagnostics (PoC) help physicians achieve faster, more accurate patient diagnoses and treatment decisions. This article breaks down how molecular test technology works and the building blocks for a PoC molecular diagnostics analyzer sensor front end system.

Read the Article

Featured Chalk Talk

uPOL Technology

Sponsored by Mouser Electronics and TDK

Power modules are a superior solution for many system designs. Their small form factor, high efficiency, ease of design-in, and solid reliability make them a great solution in a wide range of applications. In this episode of Chalk Talk, Amelia Dalton chats with Tony Ochoa of TDK about the new uPOL family of power modules and how they can deliver the power in your next design.

Click here for more information about TDK FS1406 µPOL™ DC-DC Power Modules