NEW YORK (CNN/Money) -
Motorola Inc. plans to separate its semiconductor operations to form a new, publicly traded company, the world's No. 2 cellular phone maker said Monday.
Motorola (MOT: Research, Estimates) said it was planning an initial public offering of shares in the new company, after which it will offer stock to current shareholders of Motorola. The Schaumburg, Ill.-based company said the move would allow it to focus its on communications and integrated electronic systems businesses, including cell phones.
The move would leave the company to focus on its cell phone services and software, radio communications and information services, automotive electronics, and cable and broadband devices and technology businesses.
"The semiconductor industry cycle appears to be in an upswing; therefore, Motorola believes the time is right to take these actions," the company said in a statement.
As its own publicly traded company, the new semiconductor business will be able to pursue acquisitions of other product lines and technology, rather than relying on Motorola for expansion, according to a company statement.
An IPO would be subject to shareholder and regulator approval.
Shares of Motorola fell 27 cents Friday to close at $12.28.