Intro Letter to Shareholders Our History We Are Everywhere Financial Highlights Shareholder Information Downloads

To drive the results our shareholders deserve, we must continue to compete and win in the marketplace. Our aim is to hold the number one, two or three position in all of our chosen markets. In fact, today we enjoy leadership positions in a number of large and growing segments of the semiconductor industry.

We are the number one supplier of automotive semiconductors in the world. From engines to airbags, to navigation and stereo systems, nobody puts more silicon in cars than we do. Freescale is also the industry’s top provider of semiconductors that process data over the Internet – in fact, the top 10 networking and communications equipment providers are Freescale clients.

In the wireless segment of our business, Freescale chips have been put in more than a half billion mobile devices since 1998. And as we move forward, our independence from Motorola is enabling us to compete for clients in the mobile phone segment that were previously unavailable to us, opening up a compelling growth opportunity.

The growth we expect in the years to come goes well beyond mobile phones. The ever-increasing semiconductor content of cars will fuel demand for our products, as will the drive for efficiency and pervasiveness of electronics in everything from kitchen appliances to industrial machinery. We also expect growth from emerging markets, where we can leverage our long track record and the public’s appetite for communication devices, consumer electronics and automobiles. China, in particular, represents a significant opportunity for Freescale, as we have a longstanding presence in that fast growing country.