November 16, 2005
 IDT Acquisition of Freescale TSO

IDT Networking and Communications Timing (NetCom) Business Unit has acquired the Timing Solutions Organization (TSO) Business Unit from Freescale. This Frequently Asked Questions (FAQ) document has been prepared to help answer any concerns that you may have related to this buyout.

Freescale’s TSO was Motorola’s original high-performance clock team in Tempe, AZ. This business unit served as a center of excellence on differential timing circuits used in networking, communications and advanced computing applications. TSO’s catalog has over 100 high-performance timing products, including:

  • Legacy products in Bi-Polar and BiCMOS
    • Fan-out Buffers, MUXes, and Dividers
    • Zero-delay buffers, Synthesizers and Multipliers
  • Newer products in CMOS and SiGe
    • Intelligent Dynamic Clock Switches (PLL-based) for non-stop networking, storage, and computing
    • SiGe synthesizers for Sun/IBM
    • QUICC Clocks for PowerPC

The IDT NetCom business unit was formed in 1999 as part of ICS. NetCom includes engineers that were originally from Motorola’s clock team. The TSO team will join the IDT NetCom Division in Tempe, AZ. The NetCom division is an ideal fit for the products, people and technology. There will be minimal integration issues, ensuring no disruption to customers of TSO products.

Q1.What did IDT acquire with the buyout of the Freescale TSO business unit?
IDT is buying the entire TSO BU, including all of the designs, masks, test systems, lab equipment, and products. In addition, IDT has license to all of the Freescale IP (patents) necessary to make the clocking and timing devices.

Q2.Will IDT be able to build the Freescale TSO parts in the same wafer-fabs?
IDT has perpetual foundry rights on TSO parts in Freescale wafer-fabs.

Q3.Will Freescale provide enough fab capacity to continue to support the TSO products in volume?
IDT has guaranteed wafer-fab capacity in Freescale fabs.

Q4.Who will develop clocking and timing devices for future Freescale PowerQUICC and Power PC Clocking reference designs?
IDT is the preferred clock supplier for the next three years on Freescale reference designs including Power PCs.

Q5.Will the Freescale TSO parts be changed under IDT?
IDT is buying wafers, masks, and designs, testers, test boards, and test programs. IDT will be able to continue to fully support the exact same Freescale TSO silicon and test that you have been buying.

Q6.How will the products be integrated?
The IDT paramount concern is ensuring that customer investments are preserved. Future direction for products will be determined after comprehensive planning and feedback from customers and partners. The objective is to deliver increased benefits to both IDT and Freescale customer bases, while ensuring ongoing success for each company’s baseline efforts.

Q7.Will IDT obsolete parts where duplicates exist?
Both IDT and TSO part numbers will be available. We have no plans to obsolete any duplicative products at this time.

Q8.How will this impact the new TSO products that were in development at Freescale?
There is no impact to the product development plans of either company’s products. TSO’s product development-queue and roadmap will be compared and merged with NetCom’s product strategy and, where there is overlap; R&D efforts will be directed accordingly. Once complete,it is expected that there will be a broader set of product development activities, no less.

Q9.How does this deal affect current customers? How do customers benefit from this acquisition?
In the short term, there is no impact to the customers of either company.  The full product portfolio and roadmaps will be available, with continued focus on customer quality, service and value.  Longer term, customers will benefit from a broader portfolio available to support their solutions needs, expanded R&D, and the efficiency benefits of the anticipated merger synergies.

Q10.How will IDT support existing Freescale customers?
IDT will support Freescale customers with the same level of superior service we provide to our own customer.

Q11.How will IDT price Freescale’s products?
IDT and Freescale both participate in rapidly evolving, competitive markets. Our pricing philosophy will remain consistent: provide competitive pricing while driving maximum innovation, quality, and customer value.  We foresee no change in the strategy of the communication timing products."

Q12.How do I order Freescale TSO parts from IDT?
The list of IDT/ICS sales offices can be found at the following URL:
Please contact your local sales office for information on ordering Freescale TSO parts from IDT.

Q13. How is the TSO acquisition affected by the IDT & ICS merger?
IDT has been focused on providing vital semiconductor solutions to allow customers to create and capitalize on next-generation networks. The acquisition of the TSO business allows the combined IDT Company to increase its ability to service the requirements of its customers and to accelerate its efforts to expand into adjacent market segments.