Analysis: Why Renesas is creating mobile IC spinoff

Dylan McGrath, EETimes
10/31/2010 6:48 PM EDT

SAN FRANCISCO—Renesas Electronics Corp. is spinning out its mobile semiconductor into a wholly owned subsidiary because of the markets for microcontrollers and modem chips are worlds apart, and because executives want to improve the chances of its power amplifiers being designed into reference designs from other baseband suppliers, according to executives and market analysts.

Renesas, the leading vendor of microcontrollers and the third lagest chip company by revenue, said last week it would spin off its mobile chip unit into a new subsidiary, Renesas Mobile Corp., effective Dec. 1. The products being spun out into the new subsidiary include the company's Mobile Multimedia SoC Business Division and most of the wireless modem business that formerly belonged to Nokia Corp., which Renesas is set to acquire by Nov. 30.

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