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By Applelinks Senior Editor John H. Farr
They mean it this time, according to the New York Times. Motorola itself has officially announced its intention to "spin off its struggling semiconductor operations." Interestingly, the failure of the PowerPC chip to dent Intel's dominance in the industry is cited as one of the reasons for separating the chip business from the phones. Motorola itself hasn't really been making all that many chips (or money from them) for a while, anyway: Recently, Motorola slashed its capital investment and increased its reliance on outside manufacturers, known as foundries, to make its chips. Another strategy has been to package chips with other components in "chip sets," enabling customers to design end products like cellphones more rapidly. This year, the company dropped out the ranks of the top 10 chipmakers, according to IC Insights, a research firm. What this move means for Apple is debatable, at the very least, but probably not much. There will still be a semiconductor operation, just one not financially tied to the more profitable telecom business. And the G5s come from IBM, of course..
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