Freescale to 'focus' in 2013
Freescale is to focus its activities in 2013, CEO Gregg Lowe tells Reuters.
‘Focus’ is the current industry euphemisim for exiting markets where a company is no longer competitive and concentrating on the areas where it can still make a profit.
NXP and STMicroelectronics are other companies where CEOs have talked about ‘focussing’ their efforts.
Lowe says he does not expect to see results from the focussing until 2015.
Freescale sacked about 5% of its people this year.
The company is still trying to pay off the $9.6bn debt imposed on its when private equity company Blackstone bought the company at a valuation of $17.6bn in 2006.
The debt has now been reduced to $6.5bn but many believe that Freescale can never repay it.
Freescale hasn’t grown since the 2006 acquisition and has been chronically loss-making.
Asked by EW if the record showed that the private equity industry model was not suitable for the semiconductor industry, Lowe replied that private equity gave the company the opportunity to focus.Tags: Blackstone, equity company, focussing, STMicroelectronics