Is the global semiconductor industry on the verge of a major consolidation?

Freescale Semiconductor CEO Michel Mayer, who spoke at Red Herring's ETRE technology event in Budapest on Monday, thinks so.

"The intense pressure on chip prices combined with high research and development costs have put a squeeze on the bottom line," Mr. Mayer said. He said that industry growth had dropped in recent years from a 25 percent clip to single digits. 

Cell phone chips are now made by 16 companies. Mr. Mayer predicts in this field alone the number will probably drop to 4 or 5 before long.  He hinted that Freescale would be among the companies looking to make acquisitions.

Austin, Texas-based Freescale went public in 2004.  In 2006, Freescale was taken private in a $17.6 billion buyout by a consortium led by private equity beast Blackstone Group.  The company is private for now, but that could change.  Mr. Mayer said that Freescale could be trading again within three to four years time.