Freescale unveils Scots centre of excellence

ONCE a powerhouse employing hundreds churning out silicon wafers, the former Motorola factory in East Kilbride is being re-forged into what its owners say will be an industry-leading hub for the more valuable development of microchip technology.

The site was yesterday launched as the first European “centre of excellence” operated by Freescale, the semiconductor division spun out of Motorola in 2004. The group has injected £4.4 million into the Scottish facility, which is said to have “very significant” growth potential.

A new product testing area has been built, dedicated to developing microchips that control airbags, central locking, dashboard graphics, engine performance and other functions for the car industry. Such products accounted for 38 per cent of Freescale’s $4.5 billion (£2.9bn) global sales last year.

Most of the 170 employees specialise in the automotive sector, with smaller teams working on products used in networking and industrial applications. Discussions about further investment are under way with Scottish Enterprise, which has provided £2m in grants to the facility since 2007. An announcement is expected by the end of the year.

Freescale has seven research and development centres across Europe and the Middle East, but Scotland is the first to achieve centre-of-excellence status. Steve Wainwright, general manager of the EMEA region, said customers no longer want bits of technology, but instead demand total solutions to solve specific problems or add new design features.

The company is also looking to reassert its credentials around the world. In Scotland, this will focus on areas such as road safety and energy management.

Employing more than 1,000 before its manufacturing lines were closed in 2009, Freescale was acquired in 2006 in a $17.6bn (£11.4bn) private equity deal that ranks among the ten largest buy-outs of all time. Members of the consortium included Blackstone Group, Carlyle Group, TPG Capital and Permira, all of whom retained their stakes when the Texas-headquartered business rejoined the New York Stock Exchange in May.