Rockwell IC spin-off will take aim at digital comms

Rockwell IC spin-off will take aim at digital comms
NEWPORT BEACH, Calif. — Rockwell Semiconductor Systems employees were briefed Tuesday (Nov. 10) on the name change associated with the division's spin-off from Rockwell International Corp. When the spin-off is complete at the end of the year, Rockwell's semiconductor group will adopt the name Conexant Systems Inc.

The change underscores Conexant's goal to move away from the rapidly commoditizing analog modem IC market, to establish beachheads in new broadband and wireless markets, including digital subscriber lines, cable modems and set-top boxes, switching and digital cellular chip sets.

Although the company will be communications-centric, Conexant chief executive and chairman Dwight Decker said that all five divisions from Rockwell Semiconductor will remain: personal computing, personal imaging, wireless communications, digital infotainment and network access.

Conexant not be the largest communication-specific semiconductor company in the world, he said, and the only one with strong product lines in both wireline and wireless markets.

The wireless division realized about $175 million in revenues in the current year, compared with $150 million from the network access division, showing in both cases that Conexant is diversifying from analog modems.

"It may take a few years to really move on from PC-based modems, but it is already the case that we will have more revenues this year from non-PC-modem product categories than from our PC-modem business," Decker said.

Decker is confident that the layoffs and restructuring announced earlier this year will be sufficient to move Conexant to its next phase of digital access, and that no additional layoffs or consolidations will be necessary.