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Ericsson starts negotiations on ownership of ST-Ericsson

Monday, 10 December 2012
Ericsson (NASDAQ:ERIC) today announced that it will continue to work together with STMicroelectronics (NYSE:STM) to find a suitable strategic solution for the two companies Joint Venture ST-Ericsson. STMicroelectronics has today announced its intention to exit as a shareholder in ST-Ericsson.

a press release from Ericsson say that ST-Ericsson announced its strategic plan in April 2012 and is in the middle of executing on company transformation aiming at lowering its break-even point and introducing new technologies. Ericsson continues to believe that the modem technology, which it originally contributed to the Joint Venture, has a strategic value for the wireless industry. For Ericsson, a key priority in this process is a successful market introduction of the new LTE modems that it is certain will be very competitive and needed in the market.

During the process, Ericsson will not speculate on the possible outcomes, timelines, and future ownership structures of ST-Ericsson.

STMicroelectronics is a global semiconductor leader serving customers across the spectrum of electronic applications, announced today its new strategic plan.

 “Today we are announcing the new ST, aligned with the new market environment,” said Carlo Bozotti, President and CEO of ST. “Based on that, we have made the decision to exit ST-Ericsson after a transition period. We will continue to support ST-Ericsson as their supply-chain partner, advanced process-technology partner and application-processor IP provider.”

“Our new strategy is cantered on leadership in sense and power and automotive products, and in embedded-processing solutions,” continued Bozotti. “Our specific focus is on five product areas: MEMS and sensors, smart power, automotive products, microcontrollers, and application processors including digital consumer.
By Scancomark.com Team

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