Motorola SPS expects tight capacity will spur growth
By Bolaji Ojo
Electronic Buyers' News
(09/13/99, 02:33:34 PM EDT)
Motorola Inc.'s Semiconductor Products Sector expects growth of between 9% and 11% in fiscal 1999, and sees capacity constraints in the semiconductor industry helping to lift prices strongly in the year ahead.
The company said it expects to see higher growth in the future, particularly as it raises its presence in the embedded processing market and takes advantage of opportunities in its four business units: networking, transportation, wireless, and imaging and entertainment. Those business are expected to experience a 16% CAGR until 2002, according to Hector Ruiz, president of Motorola SPS.
"One reason for our optimism is that, for the first time since 1993, both units and prices are rising in the chip industry," Ruiz said at the opening of the company's Horizons '99 conference in Austin, Texas. "The semicondutor market is now in strong growth cycle."
Motorola SPS said it has conducted a review of its operations to focus on the embedded market and will begin to leverage its IP among various product groups in response to the changing need of customers, who now demand shorter delivery time for their orders.
Some of the changes being implemented by the company include development of a library of reusable hardware and software IP while forming alliances that could help speed up development cycles with customers.
"In many ways we have become an organization in motion," Ruiz said. "The reason is that shorter time-to-market has compressed development cycles for all products."
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