Freescale Selling East Kilbride Cellular Chip Business Comes True!

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Freescale announced last week that it is actively looking to sell off it's cellular RF and power management semiconductor business.

In a press release, the Company stated that it will "explore strategic options for its cellular handset chipset products business and intends to complete a sale, joint venture agreement or other transformation in the coming months. The company's cellular handset products business includes baseband processors, RF transceivers, power management/audio, software and platforms for the cellular handset market."

Freescale's power management and RF transceivers were manufactured at their East Kilbride wafer fab, located in East Kilbride, Scotland. The fab boasts 82,000 square-feet and handles 6-inch wafers at 0.5 micron.

Earlier this year, Freescale closed it's East Kilbride facility after unsuccessful attempts to sell off the the facility. The fab first went online in 1986 and it's capabilities are considered outdated by today's standards.

Back in September 2006 when Freescale was bought out by private equity firm The Blackstone Group, I accurately predicted that, in order to properly manage the significant debt as a result of the buyout, Freescale would need to sell off East Kilbride, as well as it's power management and RF product lines (see Freescale Bought Out by Blackstone for $17.6Billion). This analysis has proved correct.