Freescale may have to share Motorola - Barron's

NEW YORK - The increasing likelihood that Motorola Inc. will use a second chip supplier for its next-generation phones could mean trouble for Freescale Semiconductor Inc., according to the March 27th edition of Barron's.

Motorola spun off Freescale to shareholders in 2004. Chips for wireless devices contribute about half of Freescale's revenue, about 70 percent of that paid for by Motorola.

Although Motorola wireless chief Ron Garriques publicly has defended Freescale, he also has been allowing his underlings to explore the possibility of adding another chip supplier, which Barron's said is believed to be Qualcomm Inc.

Jennifer Weyrauch, a Motorola spokeswoman, declined to comment, saying the company does not comment on speculation or rumor. The company also did not issue a comment to Barron's, the magazine said.

Freescale's shares have nearly doubled since the stock began trading in 2004.