Freescale Semiconductor is slimming down to focus on businesses where it can win big, the chipmaker said Thursday, and as part of that push, it's putting its cellular handset chipset business on the block.

In a press release, the company said it would complete a "sale, joint venture agreement or other transformation in the coming months." Freescale, the former chip unit of Motorola Inc. [MOT], did not put a potential price tag on the unit, which brings in an annual $1 billion in revenue and accounts for about 20% of the company's overall revenue.

In an interview with the Wall Street Journal, Freescale CEO Rich Beyer (pictured) said the company is number six in the cellular chipset business and does not have the scale necessary to compete. He also said that the company was issuing a press release about the planned divestiture to avoid alienating customers who might hear of it through other channels.

Beyer took the reins of the company in March after leaving the top position at chipmaker Intersil Corp. [ISIL]

As part of its new focus, Freescale said it will increase investments in the automotive, networking, industrial and consumer markets. -- Olaf de Senerpont Domis

See Oct. 2 press release from Freescale
See Oct. 2 story on Freescale from the Wall Street Journal (subscription required)
See Feb. 13 post on Beyer's appointment at Freescale from Tech Confidential