Intel rescue saves few Freescale jobs in France

PARIS — The information didn't come from Intel nor did it come from Freescale but it is now official. France's Ministry of Industry stated that Intel is taking over the contracts of 53 out of the 236 employees that Freescale had said it would lay off in Toulouse by the end of 2009.

Intel's decision to settle in Toulouse comes in response to a meeting between French Industry Minister Christian Estrosi and Tom Kilroy, Intel's vice president, on Sept. 21 in Paris. Estrosi then expressed its satisfaction that Intel selected France and, in particular Toulouse, to invest in R&D.

In an official statement, the French Ministry of Industry noted that this investment, that follows Intel's decision to open a design center in wireless technologies in Sophia Antipolis, "gives a very positive signal to global high technology players."

In April, as Texas Instruments was disengaging from some of its mobile phone activities, Intel announced the opening of a new design center in wireless technologies, reporting into its Ultra Mobility Group which is developing very low-consumption components for mobile PCs (UMPCs and MIDs). The unit aims to design RF subsystems for communicating mobile objects.

As part of its own transformation efforts, Freescale announced on April 22 its intention to close a 150-mm fab in Toulouse with 800 employees, by the end of 2011 and to cease the cellular product activity by the end of 2009, affecting 236 employees. Freescale said it would continue to have operations at the site following these proposed actions.

The Freescale Toulouse fab's 68,000-square-foot factory produces power management products for the automotive market and has manufacturing capabilities that extend down to the 0.65-micron technology node. Freescale Toulouse Fab started production in 1969.